Singapore’s stock market is ending 2025 on a high note. The Straits Times Index (STI) closed at 4,520.40 on 8 December 2025, just a shade below its recent record of 4,575.91 and up about 19% over the past 12 months. [1]
At the same time, bond yields and cash rates have been sliding. The 10‑year Singapore government bond yield has fallen from 2.86% at the start of 2025 to about 2.06% in late November, while six‑month T‑bill and fixed deposit rates are now under 1.5%. [2] That makes dividend‑paying stocks and REITs far more attractive versus cash.
Globally, markets are bracing for another US Federal Reserve rate cut this week, with futures pricing in a high probability of a further 25‑basis‑point move after two earlier cuts. [3] The Monetary Authority of Singapore (MAS) notes that overall financial conditions here are now “mildly supportive” as borrowing costs ease and credit continues to expand. [4]
Against that backdrop, Singapore investors are rotating back into blue‑chip banks, high‑yield REITs, tourism plays and new‑economy names. Trading data from SGX shows that the 30 most actively traded stocks outside the STI delivered a 25% median total return year‑to‑date, with seven REITs dominating that group. [5]
Below is a news‑driven, research‑backed list of eight SGX stocks that look well‑positioned right now (as of 8 December 2025) for different types of investors — income seekers, growth hunters and those comfortable with higher risk.
Important: This article is for information and education only. It is not personal investment advice. Always do your own research and consider speaking to a licensed financial adviser before investing.
How we picked the “best stocks to buy now” on SGX
Before we dive into individual names, here are the main filters used:
- Fresh news or catalysts in the past few months (earnings beats, strategic deals, IPOs, sector upgrades).
- Supportive macro/sector context – especially falling rates, tourism recovery and government efforts to deepen capital markets.
- Reasonable fundamentals – profits, balance sheet strength, dividends or clear growth runway.
- Broad interest from analysts/institutions – not thinly traded “story stocks.”
Now, let’s go through the picks, grouped by theme.
1. DBS Group Holdings (D05) – High‑quality income from Singapore’s largest bank
DBS remains a core holding for many Singapore investors, and 2025 has reinforced why.
What’s happening now
An IG Singapore research piece on “Top Singapore stocks to watch in 2025” highlighted DBS as its number one pick, noting that:
- Q2 2025 net profit rose to about S$2.82 billion, up 1% year‑on‑year, beating analyst estimates.
- Profit before tax grew around 5% year‑on‑year to S$3.39 billion.
- The bank raised its ordinary dividend to S$0.60 per share for Q2 and paid an additional S$0.15 capital return dividend, bringing total 1H 2025 payouts to S$1.20 ordinary + S$0.30 capital return per share. [6]
DBS shares hit an all‑time high around S$51.45 in August 2025 and had climbed roughly 17% for the year at that time, trading at about 12.7x earnings and 2.1x book value. [7] A later analysis from The Smart Investor noted the stock moving closer to S$54 by mid‑November with a trailing dividend yield above 5%, supported by record earnings. [8]
Why DBS looks like one of the best Singapore stocks to buy now
Bull case:
- High and rising dividends supported by strong capital ratios (CET1 about 17%, comfortably above regulatory minimums). [9]
- Leading franchise across Singapore and North Asia with a strong wealth management, transaction banking and digital platform engine.
- Benefit from solid loan growth and fee income, even if net interest margins compress as rates fall.
Key risks:
- As interest rates decline, net interest margins will eventually narrow.
- DBS now trades near all‑time highs; valuation is no longer cheap, making it more sensitive to any earnings disappointment or credit shock.
- Ongoing global uncertainties (China slowdown, geopolitics) could affect regional loan quality and fee income.
Who it’s for: Investors seeking a core blue‑chip income stock with a track record of special/capital return dividends and strong corporate governance.
2. OCBC (O39) – Blue‑chip bank with room to catch up
If DBS is the market’s “quality at any price” bank, OCBC is the relative value play.
Fresh catalysts
IG’s September review of top Singapore stocks described OCBC as a key ASEAN‑focused bank:
- Q2 2025 net profit came in at about S$1.82 billion, down 7% year‑on‑year as net interest margins narrowed by roughly 28 basis points.
- Even so, OCBC declared a 1H 2025 interim dividend of S$0.41, translating into a dividend yield near 4.9% at around S$17 in August.
- Asset quality remained strong, with an NPL ratio of about 0.9%, and CET1 capital roughly 17%. [10]
More recently, OCBC shares hit a new intraday record of S$19 on 4 December and ended that week at S$18.92. A Straits Times market column noted that analysts still see upside potential because OCBC trades at a more moderate valuation than DBS, despite comparable capital strength and standout performance in its wealth management arm. [11]
OCBC also appeared in a Smart Investor list of blue‑chip stocks at 52‑week highs, underscoring strong investor interest. [12]
Why OCBC stands out now
Bull case:
- Solid balance sheet and conservative culture – historically lower NPLs than many regional peers.
- Strong wealth management and insurance businesses (via Great Eastern) offering diversified fee income.
- Still trades at a discount to DBS on price‑to‑book, even after setting fresh highs, so there may be catch‑up room if markets stay constructive.
Key risks:
- Profit growth is more subdued than DBS: Q2 earnings fell on margin compression. [13]
- Slower‑than‑expected global growth could weigh on trade‑related lending and wealth flows.
- As with all banks, a sharp spike in credit losses would hurt earnings.
Who it’s for: Income investors wanting blue‑chip exposure with slightly better value than DBS and strong wealth‑management leverage to growing regional affluence.
3. Singapore Exchange (S68) – Benefiting from a livelier market and policy tailwinds
When trading and IPO activity pick up, SGX is one of the clearest beneficiaries.
2025 scorecard
IG’s September 2025 analysis named Singapore Exchange (SGX) one of the top five SGX stocks to watch, highlighting:
- FY2025 net profit of about S$648 million, up 8.4% year‑on‑year.
- Earnings before interest, tax, depreciation and amortisation (EBITDA) rising nearly 18%.
- A proposed final quarterly dividend of 10.5 cents per share, taking total FY2025 dividend to 37.5 cents, an 8.7% increase over FY2024.
- The shares had rallied around 30% in 2025, with a relatively rich P/E and P/B ratio reflecting its high‑quality “monopoly” status. [14]
At the policy level, the Singapore government has been actively trying to boost equity market returns and liquidity. A Business Times article from September noted that analysts have become more positive on the STI following a “value‑unlock” package and the Equity Market Development Programme (EQDP), and highlighted a 12‑month consensus STI target of 4,619.49 — only a few percentage points above current levels. [15]
Separately, SGX introduced the iEdge Singapore Next 50 Index, putting more spotlight on the next tier of mid‑cap names, and reported that the 30 most‑traded non‑STI stocks delivered a 25% median total return this year. [16]
Why SGX looks attractive now
Bull case:
- Direct beneficiary of higher trading volumes and new listings. Recent IPOs like UltraGreen.ai and strong moves in Catalist counters such as MetaOptics underscore renewed activity in Singapore’s equity market. [17]
- Government‑backed measures (EQDP, market‑development incentives) should help sustain interest from issuers and investors.
- SGX offers a defensive earning stream (listing fees, clearing, derivatives) but with cyclical upside when markets heat up.
Key risks:
- Trading volumes are inherently cyclical and sensitive to global risk sentiment.
- Valuations are already elevated versus global exchange peers; earnings growth may need to keep delivering to justify multiples.
Who it’s for: Investors wanting a structural play on Singapore’s capital‑market development rather than a single sector like banks or property.
4. CapitaLand Ascendas REIT (CLAR, A17U) – Quality industrial REIT for the rate‑cut cycle
With interest rates falling and income assets back in focus, Singapore REITs (S‑REITs) are drawing fresh attention.
Beansprout (a MAS‑licensed platform) recently noted that while T‑bill and fixed deposit yields have slipped below 1.5%, many REITs still yield above 5%, and that the 10‑year Singapore government bond yield dropped to about 2.06% by 23 November 2025 from 2.86% at the start of the year. [18]
An October report from Syfe highlighted that the iEdge S‑REIT Leaders Index delivered about 8.95% total return in Q3 2025, outpacing the STI that quarter, with S‑REITs up roughly 12.6% year‑to‑date versus the STI’s 18.3%. [19]
Within the sector, CapitaLand Ascendas REIT (CLAR) stands out as a high‑quality, diversified industrial giant.
Fundamentals and analyst view
IG’s September write‑up on CLAR highlighted:
- Market cap around S$12.4 billion.
- Net profit in 1H 2025 of about S$523.4 million, down slightly year‑on‑year, but distributable income still edged up to S$331.1 million.
- 1H 2025 distribution per unit (DPU) of 7.477 cents, about 0.6% lower year‑on‑year, giving a yield of around 4.8% at the then‑prevailing price.
- Gearing of about 37.4% and interest coverage around 3.7x.
- Analyst consensus target price near S$3.345, implying almost 24% upside from August levels. [20]
DBS Research’s August sector report on S‑REITs noted that CLAR completed roughly S$1.1 billion of accretive acquisitions in 1H 2025 and suggested the ongoing decline in interest rates provides a more favourable environment for further deals. [21]
CLAR also featured in a list of Singapore blue‑chip stocks at 52‑week highs this quarter, underscoring investor confidence in its portfolio of business parks, logistics and data‑centre‑linked assets. [22]
Why CLAR is a prime REIT pick now
Bull case:
- High‑quality, diversified industrial portfolio across Singapore and key overseas markets.
- Prudent balance sheet with moderate gearing and healthy interest coverage gives room to ride lower rates.
- Structural tailwinds from demand for logistics, business park and data‑centre‑related space.
Key risks:
- DPU growth has been muted in the short term due to higher tax expenses and one‑off costs; investors must be patient. [23]
- A sharp slowdown in global tech or manufacturing could affect industrial demand.
- As with all REITs, further equity raisings are possible if large acquisitions emerge.
Who it’s for: Investors who want REIT exposure to the rate‑cut cycle, but prefer large, diversified, investment‑grade names over niche or highly leveraged trusts.
5. Keppel REIT (K71U) – Undervalued office REIT with leverage to CBD recovery
While retail and logistics REITs have hogged the limelight, office REITs may offer more value at this point in the cycle.
A recent Business Times piece on S‑REITs highlighted that the sector still trades at a distribution yield around 5.4% for 2025, with yield spreads against the 10‑year Singapore government bond of roughly 3.7–3.9 percentage points, even after this year’s rally. It cited Keppel REIT and Frasers Logistics & Commercial Trust (FLCT) as top undervalued picks from Morningstar’s research coverage. [24]
Beansprout noted that vacancy rates for high‑quality Category 1 offices improved from 11.0% to 9.9% in Q3 2025, with Category 1 rents broadly steady, pointing to a “flight to quality” in Singapore’s office market. [25]
Why Keppel REIT deserves a look
Bull case:
- Portfolio anchored by prime CBD office assets, which are benefiting from better occupancy and resilient rents as tenants consolidate into higher‑quality space.
- Valuation discount to book value remains sizable, even as fundamentals improve, suggesting room for re‑rating if office sentiment continues to firm. [26]
- Distributions offer mid‑5% yields, which are attractive versus sub‑1.5% short‑term cash rates and ~2% government bond yields in Singapore. [27]
Key risks:
- Office cycles can be long; new supply or a recession could weigh on rents and valuations.
- Higher overseas exposure introduces FX and policy risk.
- If rates unexpectedly rise again, office REITs are usually among the more sensitive segments.
Who it’s for: Investors seeking value within the REIT space, comfortable with office‑cycle volatility and willing to hold through ups and downs.
6. Sembcorp Industries (U96) – Energy transition + potential India IPO unlock
Sembcorp has transformed itself from a conventional power and shipyard conglomerate into a renewables‑focused energy and industrial solutions group, and 2025 has brought two major catalysts.
Latest news: India IPO and Australian deal talks
On 24 November 2025, Reuters reported that Sembcorp had started discussions to list its India arm, Sembcorp Green Infra, in Mumbai, appointing Citi, HSBC and Axis Capital as advisers. The potential IPO — Sembcorp’s second attempt after withdrawing a 2018 filing — is targeted for launch within eight to nine months, subject to market conditions. [28]
The report noted that Sembcorp Green Infra:
- Focuses on wind, solar and energy storage.
- Competes with major Indian renewables players like Adani Green Energy.
- Generated about US$40 million profit on US$252 million of revenue in the year to 31 March 2024, after selling its thermal assets in 2023 for roughly US$1.47 billion. [29]
Separately, a Business Times “stocks to watch” column on 8 December flagged Sembcorp after news that it is in early‑stage talks to acquire Australian energy retailer Alinta Energy. The article noted that Sembcorp’s shares closed 0.5% higher at S$5.99 on Friday after the report, though the company said no binding agreement has been reached. [30]
Ownership is also supportive: a recent Simply Wall St piece pointed out that private equity (Temasek/related entities) holds roughly 50% of Sembcorp, with the general public owning around 33%, and described the stock as “undervalued with a proven track record” based on its models. [31]
Phillip Securities’ research archive shows a June 2025 report on Sembcorp titled “Stable growth ahead,” with a target price of S$7.90, citing renewables expansion and earnings visibility as key drivers (though the full report sits behind a client wall). [32]
Why Sembcorp is on many watchlists
Bull case:
- Energy‑transition story with growing renewables portfolio in India and other markets.
- Potential value unlock from an India IPO, which could crystallise the value of its fast‑growing green assets.
- Possible synergies from an Alinta Energy acquisition, giving Sembcorp a larger footprint in a developed power market and more exposure to retail customers.
Key risks:
- Deal and IPO risks: valuations might disappoint, deals could be delayed, or integration may prove challenging.
- Policy risk in key markets like India and Australia.
- Execution risk in shifting further away from legacy fossil‑fuel businesses.
Who it’s for: Investors looking for a long‑term energy‑transition and infrastructure growth story with clear medium‑term catalysts.
7. Genting Singapore (G13) – Tourism recovery plus RWS 2.0 expansion
If you’re bullish on tourism and consumer spending, Genting Singapore — operator of Resorts World Sentosa (RWS) — is hard to ignore.
Tourism surge supports casino & attractions
The Singapore Tourism Board (STB) reported that international visitor arrivals jumped 21% in 2024 to 16.5 million, and projects 17–18.5 million visitors in 2025, with tourism receipts expected at S$29–30.5 billion, potentially exceeding pre‑Covid records. [33]
More recent data shows momentum continuing: an October 2025 update said Singapore welcomed about 1.38 million visitors that month, a 4.9% year‑on‑year increase, with strong contributions from China, South Korea and Indonesia. [34]
Strong Q3 2025 earnings
Genting Singapore is clearly benefitting. A Business Times results piece reported:
- Q3 FY2025 net profit of about S$94.6 million, up 19% year‑on‑year.
- Revenue of around S$649.8 million, up 16% year‑on‑year, driven by higher VIP rolling volume and improved win rate.
- Adjusted EBITDA up sharply (other sources cite roughly 36% year‑on‑year growth). [35]
Analysts at UOB Kay Hian described the quarter as “gaining grounds from RWS 2.0 transformation”, noting that visitor footfall and gaming statistics improved after a weaker Q2 which was disrupted by renovation works and temporary attraction closures. [36]
A separate Smart Investor review of blue‑chip stocks noted that Genting’s recovery has pushed its share price to fresh highs this year, with a dividend yield of roughly 5% based on its latest payouts, though heavy capital expenditure for the S$6.8 billion RWS 2.0 expansion remains a key consideration. [37]
Why Genting Singapore is on 2025 buy lists
Bull case:
- Direct beneficiary of rising visitor arrivals and tourism receipts, with STB expecting 2025 arrivals to approach or exceed pre‑pandemic peaks. [38]
- RWS 2.0 expansion should enhance the resort’s competitive position, adding new attractions and hotel capacity.
- Strong Q3 results indicate that earnings are rebounding despite ongoing renovation works.
Key risks:
- RWS 2.0 involves massive capex, which could pressure free cash flow and dividends in the medium term.
- Gaming remains a cyclical, highly regulated industry; any policy shifts or macro slowdown could hit VIP and mass‑market volumes.
- Competition from regional integrated resorts (Macau, the Philippines, Japan in future) could intensify.
Who it’s for: Investors comfortable with cyclical consumer and gaming exposure, seeking a leveraged play on Singapore’s tourism boom.
8. “New economy” and high‑growth ideas: UltraGreen.ai, MetaOptics & the Next 30
For investors willing to accept higher volatility, new listings and tech‑leaning mid‑caps on SGX are starting to show life again.
A Straits Times market insights column published 8 December 2025 highlighted:
- UltraGreen.ai, a surgical technology company using fluorescence imaging solutions, listed on SGX’s mainboard on 3 December, raising about US$162.5 million via the IPO plus roughly US$237.5 million from cornerstone investors, for total proceeds near US$400 million.
- After an initial pop to roughly US$1.62, UltraGreen.ai ended its first week of trading at US$1.44, just one cent below its IPO price of US$1.45, on heavy volume of over 53 million shares in three days. [39]
- MetaOptics, a Catalist‑listed semiconductor optics firm that debuted in September, surged to about S$1.49 on 5 December before closing at S$1.26, up 76% for the week and roughly 530% above its IPO price of S$0.20, boosted by news of a planned share placement to raise S$4.85 million and a future Nasdaq listing. [40]
The same SGX update cited in the article noted that the 30 most‑traded stocks outside the STI have generated a 25% median total return year‑to‑date, and highlighted tech names like CSE Global, iFAST Corporation and Frencken Group as among those seeing the highest net institutional inflows relative to market cap. [41]
How to think about these “best stocks” candidates
Potential upside:
- UltraGreen.ai offers exposure to med‑tech and surgical innovation; if execution matches the IPO story, markets could re‑rate it over the medium term.
- MetaOptics sits at the intersection of semiconductors and optics — areas with strong structural demand from AI, data centres and advanced electronics.
- Mid‑cap tech and engineering names like iFAST, CSE Global and Frencken benefit from secular themes such as digital wealth platforms, industrial automation and electronics manufacturing.
Key risks:
- These counters are far more volatile than blue‑chips; double‑digit daily swings are common.
- Liquidity can dry up quickly in risk‑off environments, widening bid–ask spreads.
- Business models are often more sensitive to execution and single projects/customers than diversified banks or REITs.
Who they’re for: Sophisticated or adventurous investors looking for higher‑beta growth ideas, ideally as a small “satellite” allocation around a core portfolio of banks, REITs and large‑cap names.
Putting it all together – building a Singapore portfolio for 2026 and beyond
As of 8 December 2025, Singapore’s equity market sits near record highs, but the macro backdrop of easing interest rates, strong tourism and government support for capital markets continues to underpin earnings and valuations.
A simple way to think about a diversified SGX allocation using the stocks above:
- Core income & stability (40–60%)
- DBS, OCBC, SGX
- These offer dividends, resilient profits and regional growth exposure.
- Yield & rate‑cut beneficiaries (25–40%)
- CapitaLand Ascendas REIT, Keppel REIT (plus other quality REITs highlighted by analysts, like Frasers Centrepoint Trust or Mapletree Logistics Trust). [42]
- Growth & catalysts (10–25%)
- Sembcorp Industries, Genting Singapore.
- High‑risk/high‑reward satellites (up to 10%)
- New economy/tech IPOs and mid‑caps such as UltraGreen.ai, MetaOptics, or selected tech/engineering names.
Exact weightings depend on your risk profile, time horizon and income needs. If you’re closer to retirement or prioritising stability, you might tilt towards banks + large REITs. If you’re younger and comfortable with volatility, you might allocate more to Sembcorp, Genting and growth mid‑caps.
Whatever your strategy, three practical rules stand out for Singapore’s current market:
- Diversify across sectors (banks, REITs, tourism, infrastructure, tech).
- Watch interest‑rate expectations – they remain the key driver for bank margins and REIT valuations. [43]
- Anchor on quality and balance sheets, especially after a strong 2025 rally.
And above all: don’t treat any list of “best stocks to buy now” as a guarantee. Use it as a research starting point, not a shopping list.
References
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