Even though Singapore's economy is taking a big hit from the U.S.-China trade war, stocks in the city-state remain relatively attractive compared to the rest of Asia, analysts told CNBC.
"Singapore companies offer you pretty good yield. The dividend yields in Singapore are one of the highest you have in Asia," Menon told CNBC in late August.Menon's views were echoed by REYL Singapore's Head of Portfolio Management Daryl Liew. Singapore's export-reliant economy has suffered in the midst of a protracted trade war between the world's two largest economies, that has dragged on for more than a year as both sides slap escalating tariffs on billions of dollars of worth of goods from each other., with some analysts warning that a recession may be around the corner. Last month, Singapore's government slashed its 2019 official growth forecast to between 0% and 1%, from between 1.5% and 2.5% previously.
"The dollar tends to be a lot more stable ... in that kind of environment," Liew said. For investors in REITs or the defensive, high dividend stocks listed here, that allows them to get the yield while not losing too much on the currency front, he added.Beyond offering investors with safer investment options, Singapore-listed companies could also offer investors an opportunity to tap into the growth of the wider Southeast Asian region.
As a result, this gives investors a buying opportunity to tap into the growth of Southeast Asia as well as the wider Asia continent, he added.Still, Singapore's stock exchange could see growth headwinds ahead as it aims to attract high-profile listings. In the last two years, it has lost the likes of Southeast Asian internet powerhouseand gaming hardware manufacturing firm Razer, which chose to list overseas in New York and Hong Kong, respectively.
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