What will drive Singapore to double its stock market value by 2030?

Singapore could even rank closer to peers like Taiwan and Australia.

Singapore is on track to nearly double its stock market capitalisation by 2030, driven by productivity gains, equity market reforms, and the country’s strategic push into high-growth sectors, according to a new report by Morgan Stanley.

The bank forecasts Singapore’s GDP to grow at an average of 3% annually over the next five years, the fastest amongst developed economies. 

Household net assets are projected to reach $5.12t (US$4t) by 2030, up from about $2.56 t (US$2t) currently.

On a per capita basis, net household wealth is expected to grow to $3.20m (US$2.5m) from $2.05m (US$1.6m).

Singapore’s return on equity (RoE) is expected to rise to 14%, with a bull case of 16%, pushing the price-to-book multiple from 1.7x to 2.3x by the end of the decade. 

These figures would bring Singapore closer to peers like Taiwan and Australia.

Morgan Stanley identifies three key pillars underpinning this trajectory: further development of Singapore’s hub economy, early adoption of emerging technologies such as AI and autonomous vehicles, and sweeping reforms to revitalise the equity market. 

Combined, these are expected to spur capital inflows and encourage more listings, especially from Singapore’s vibrant tech startup scene and growing stable of unicorns.

Significant state-led initiatives include billions in fresh capital targeted at domestic equities and the consideration of a “value-up” strategy similar to those in Japan and South Korea.

Reforms aim to address long-standing concerns over market liquidity and a lack of growth stocks.

Large caps such as DBS, SGX, Sembcorp Industries, CapitaLand Investment, and Keppel are poised to benefit from these reforms and broader macro trends, according to the report.

Tech-focused companies like Grab, Sea Ltd, and Singtel are also highlighted for their roles in AI adoption and digital infrastructure expansion.

If reforms succeed, Morgan Stanley sees the MSCI Singapore Index potentially doubling within five years.

($1.00 = US$0.78)