Singapore shares ended in the red on Friday (Feb 14), after hitting a record high earlier in the week. The benchmark Straits Times Index (STI) fell 0.1 per cent or 5.08 points to 3,877.50, even as most regional exchanges ended higher.

STI rose 0.4% this week. In terms of star stocks, DBS and OCBC rose 0.4%; SIA rose 0.5%; UOB rose 1.8%; Singtel rose 2.4%; Seatrium rose 19.4%.

While Mapletree Industrial Trust fell 4.7%; SGX fell 8.7%.

Market News

Singapore Revises 2024 GDP Growth Upwards to 4.4%; 2025 Forecast Range Stays at 1 to 3%

Singapore’s economy grew 4.4 per cent in 2024, more than the advance estimate of 4 per cent, data from the Ministry of Trade and Industry (MTI) showed on Friday (Feb 14).

This accelerated from the 2023 full-year 1.8 per cent growth. But for 2025, MTI’s growth forecast range remains unchanged at 1 to 3 per cent.

The upward revision for 2024 came as fourth-quarter gross domestic product growth was adjusted upwards to 5 per cent year on year, from the advance estimate of 4.3 per cent. Still, it remained lower than Q3’s revised 5.7 per cent expansion.

DBS Surges to Record on Higher Margins, Capital Return Plans

Shares of DBS soared to a record high on Monday after Singapore's largest bank flagged an improvement in net interest income for 2025 and a dividend capital return plan, in line with a jump in fourth-quarter profit that met expectations.

DBS, the first Singapore lender to report this earnings season, said October-December net profit climbed to S$2.62 billion ($1.9 billion) from S$2.39 billion a year earlier, driven by growth in its commercial book and markets trading.

Southeast Asia's largest bank by assets now expects 2025 group net interest income to slightly exceed last year's S$15.04 billion ($11.1 billion), an upgrade from its previous forecast of remaining at 2024 levels.

DBS declared a final dividend of 60 Singapore cents per share, versus 54 cents declared a year ago.

It said it planned to introduce a capital return dividend of 15 Singapore cents per share per quarter to be paid out over 2025, and expected to pay out a similar amount of capital either via this plan or other mechanisms in subsequent two years.

MAS Review Group Proposes Tax Perks to Boost Singapore's Equities Market; More Details on Feb 21

The Monetary Authority of Singapore’s (MAS) equities market review group proposes to introduce tax incentives to spur more listings and investments in Singapore’s equities market, in its first set of measures announced on Thursday (Feb 13).

These measures include tax incentives to attract enterprises and fund managers to list in Singapore. They also aim to encourage the launch and growth of funds with substantial investment in local equities.

The review group’s focus is to strengthen the competitiveness of the equities market through a set of proposals to catalyse investor interest and boost the supply of quality listings, and to streamline the regulatory process for initial public offerings.

The announcement said that a fuller update on this first set of measures will be provided on Feb 21. It will also continue to work on the next set of measures to foster longer-term development and sustainable growth of Singapore’s equities market, which will be presented in the second half of 2025.

Alibaba’s Stock Surges After Investors Buy Into iPhone AI Hopes

Alibaba HK SDR 5to1 surged 21.8% this week. Alibaba will partner with Apple to support iPhones' AI services offering in China.

Meanwhile, Alibaba's progress in AI and rumors of the China inviting Alibaba founder Jack Ma to meet with top leaders have further fueled investor optimism.

Seatrium Jumps As It Inks MOU with BP for Deepwater Production Unit in Offshore US

Seatrium shares jumped 19.4% this week, as it announced its memorandum of understanding (MOU) with BP Exploration & Production, a subsidiary of multinational oil and gas company BP, to conduct engineering works on a floating production unit (FPU) in the Gulf of Mexico.

Under the MOU, Seatrium will provide engineering, procurement, construction and commissioning services for the Tiber FPU, which will support the development of BP’s deepwater assets in the gulf.

SGX Sinks as Investors Are Less Than Impressed with the Initial Proposals to Revive the Equities Market

SGX fell 8.7% this week as investors were less than impressed with the initial proposals to revive the equities market.

Citi Research downgraded its call on the SGX to a “sell” on Friday, as it expects the recent optimism priced into the counter’s valuation to unwind. It also lowered the price target of the stock to S$11.90.

The Week Ahead

Singapore's government is expected to focus on cost of living issues, housing and employment in next week's budget, as it heads towards an election buoyed by strong growth and low inflation but facing uncertainties over U.S. trade policies.

Economists forecast an expansionary budget in 2025, with DBS expecting an overall fiscal deficit of S$3.8 billion ($2.8 billion), or 0.5% of gross domestic product and Maybank estimating a deficit of S$6 billion, or overall surplus of 0.8%.

The two banks expect the government to report an overall fiscal surplus of 0.8% of GDP in 2024, higher than the government forecast of 0.1% due to unexpected growth in revenue from corporate and personal income and goods and services taxes.