Singapore overview

Find out how global investment trends in areas such as sustainability and private markets are affecting Singapore — as well as how local strategies are being adapted for the new investment landscape

New paths in a changing investment landscape

Investors currently face difficult challenges. Ongoing inflation and geopolitical uncertainty – coupled with the need to decarbonise our economies – are making markets difficult to navigate. To understand how their strategies and views are adapting, Schroders’ Global Investor Study surveyed over 23,000 people who invest, from 33 countries and territories around the world.

74%
of people in Singapore agree that higher inflation and interest rates mean we have entered a new regime in policy and market behaviour
50%
have changed their investment strategy in light of this and
39%
intend to do so

Yet people are still optimistic about returns

How people in Singapore think their returns over the next 12 months will compare with the previous 12 months

What investments have become more attractive to people in Singapore over the last six months?

Ranked by the difference between “more attractive” and “less attractive”

#1
Government Bonds
#2
Cash, or cash equivalent
#3
Digital assets/Private assets

Sustainable investment: time to engage

As people understand more about sustainable investing, they are thinking in greater depth about what it means. One aspect is “active ownership”, where investment managers influence company boards and management teams so that more sustainable practices are properly considered for the benefit of long-term value creation.

A large majority of people in Singapore believe that engaging with companies on sustainability will benefit their investments

Do people in Singapore think encouraging companies to act sustainably helps generate long-term value?

As people in Singapore learn about investing, they become more convinced that active ownership is effective

Top three areas where people in Singapore think engagement is most important

More information and education would mean more people would invest sustainably

Yet overall, people in Singapore remain enthusiastic about sustainable investing

Whether people in Singapore are attracted to sustainable funds and why

Moving forward with private assets

The survey shows people generally understand the issues around investing in private assets. (Private assets include private equity, real estate, infrastructure, and private debt and credit, i.e. direct lending to companies.) This is an important finding, as increasingly regulators globally are allowing ordinary investors to access these types of investments, which were previously reserved for pension funds and similar large institutions.

The top three private assets people in Singapore most want to invest in

25%
Real estate
24%
Private equity
22%
Infrastructure and renewable energy

People in Singapore think private assets can boost diversification and performance

Reasons why people in Singapore would invest in private assets

But they acknowledge the complexities around private assets, and admit they need to gain experience with them

Top five perceived barriers to people in Singapore investing in private assets

On average, people in Singapore would consider putting

Schroders commissioned alan. agency and iResearch to conduct an independent online survey of more than 23,000 people who invest from 33 countries and territories around the globe, spanning across Europe, Asia and the Americas. The survey was conducted online between May 26 and July 31, 2023. The research defines “people” as those who will invest at least €10,000 (or the equivalent) in the next 12 months and who have changed their investments within the last 10 years. Due to this threshold, Schroders acknowledges that the research findings are not representative of everyone’s experience.

Important information:
This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy. Information herein is believed to be reliable but we do not warrant its completeness or accuracy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third-party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third-party data. The material is not intended to provide, and should not be relied on for accounting, legal or tax advice. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. No responsibility can be accepted for error of fact or opinion. Any references to securities, sectors, regions and/or countries are for illustrative purposes only. Schroders has expressed its own views and opinions in this document and these may change.
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