Singapore stocks: Once bitten, twice shy

[swakoo]

Potentially another tailwind besides the EQDP:

New CPF life-cycle investment scheme could channel up to S$9 billion a year into Singapore stocks: Citi

It could provide ‘sufficient recurring liquidity inflow’ into local equities beyond the EQDP’s conclusion.

[specuvestor]

Our market not broad enough and small cap stocks are already being elevated; with HLA and Infotech placement starting

[Big Toe]

HLA is very interesting now.
They dont need the money.
Placement likely to soften the ground and prepare for the approaching HK IPO.
Usually I would not be interested in such a company BUT
it seems all its guns are firing right now.
EQDP/CPF scheme is the cherry on top.

[weijian]

@swakoo,
The details for this CPF life cycle investment scheme are still unknown and so I am not too hopeful yet. US 401(k) had 2 major reforms: automatic payroll deduction in 1998 and making index funds the legal default for these automated deductions in 2006. So along these lines, how the distribution is done will probably decide if this is another significant move. But if history is a guide, ie. the formation of the MAS Review Group to the eventual flagship EQDP and all the others like Value-Up/Global Board Listing etc, if everything is executed as per schedule - there is a good chance of a Cambrian explosion event on the local bourse.

@specuvestor,
To be honest, I have similar feelings. But I thought I may be looking with old lenses and so maybe it is time to wipe down our lenses and take another look? As I have said in another thread, I welcome bubbles (if any) in assets I already own!

@BigToe,
I suppose you are talking about the HKEX IPO of Guangxi Yuchai Marine & Genset Power (MGP). For a start, MGP is directly owned by China Yuchai (while HLA owns China Yuchai) and so with the layer between HLA and MGP, I am not too sure of the connection between HLA's placement and MGP's IPO. Nonetheless, HLA is a mini industrial conglomerate and so it is probably going to have that usual conglomerate discount. Therefore, it may always look cheap and all parts need to work for the "sum of parts" to work. It is probably easier to buy the parts themselves. This is especially true if the parts themselves (or their equivalents) are listed as well. But if the "sum of parts" decide to unwind itself (like we have seen at DFI Retail or JMH etc), then the "sum of parts" will look more interesting than the parts itself.

[swakoo]

The details for this CPF life cycle investment scheme are still unknown and so I am not too hopeful yet.

Think markets usually move in anticipation of event, so maybe that's all that matters.

The Singapore equities market is buzzing. Market players are hoping it can last

But if history is a guide, ie. the formation of the MAS Review Group to the eventual flagship EQDP and all the others like Value-Up/Global Board Listing etc, if everything is executed as per schedule - there is a good chance of a Cambrian explosion event on the local bourse.

After a Cambrian type explosion, let's hope it ushers in a long Paleozoic type era that outlives us. Before a Permian-Triassic type mass extinction sets in.

[weijian]

The details for this CPF life cycle investment scheme are still unknown and so I am not too hopeful yet.

Think markets usually move in anticipation of event, so maybe that's all that matters.

The Singapore equities market is buzzing. Market players are hoping it can last

Hi swakoo,

Markets definitely does a pretty decent job of pricing the future. But all market participants from the regulator (MAS) to the marketeers (the financial podcast producers interviewed in the article) definitely hope for market vibrancy to be sustainable. So maybe that's why in terms of timeframe, the CPF life cycle investment scheme will only kick in after the MAS Review actions are relatively executed.

[Corgitator]

"Citi highlighted the untapped potential offered by the new scheme. It noted that CPF generated around S$58 billion in annual contribution inflows in 2025. 
“Assuming 10 to 15 per cent of this amount is allocated into equities annually, the market could see an additional S$6 billion to S$9 billion in annual liquidity injection, thereby providing sustained demand (and) support for Singapore equities beyond EQDP’s potential end,” said the bank."

While no details have been confirmed, I'm fairly certain that the equity sleeve of the life cycle products will globally diversified. Maybe some slight overweight in SG equities, but definitely not anywhere near the 100% that Citi is assuming.

[Big Toe]

The absolute amounts in the EQDP and CPF life investment scheme is important but not as important as the intention and timing of these measures. It marks a significant shift in how the government allocates its resources and how they view the local stock mkt/local companies.

[weijian]

Author has lobbied for CDL/UOL to do a "HKL" which I believe is in everyone's interest to do so, except that of the controlling shareholders' (unfortunately).

For a start, let's recall the HKL journey. While HKL's transformation was announced in Oct2024, the initial action started much earlier in 2021 at the parent's level with the "unfair" buyout of Jardine Strategic (JSH) by Jardine Matheson (JMH). The merged JMH had the effect of unwinding the cross holdings. In addition, the Jardine companies had their BOD (non executive) and CEOs refreshed with external hires. Looking further back, we can argue that the original trigger point came when Ben Keswick fully took over from his very successful uncle Sir Henry Keswick who retired in 2018. After decades of great performance under Sir Henry, things didn't work in the last decade and that was probably what forced the transformation across the entire Jardine group as we have observed thus far.

Now back to CDL/UOL.

Thanks to Dr Wu and also poor results from Kwek Junior's misplaced China investments, CDL has employed an external consulting firm for a strategic review that is due to be out by mid 2026. I do hope it meets the high hopes that Mr Market has placed on it. But I am pretty sure the consultants are not going to recommend to change the top 2 honchos occupied by father and son, isn't it?

As for UOL, everything all goes back to the Wee family. Post covid, banking (UOB) has been providing sufficiently good returns for the family that there isn't the external shock of huge underperformance like what Jardines and Kweks experienced. With the passing of Founder Wee and subsequent succession and inheritance already well completed, it is probably business as usual. The family trust structure will last for generations.

Quantify, be ambitious: Time for CDL, UOL to unveil plans to further boost share price

As at Tuesday (May 19), CDL’s share price was S$8.22, representing a 23 per cent discount to its end-2025 net asset value (NAV) per share of S$10.74. It is also a larger discount of 54 per cent to the restated NAV per share of S$17.99 with fair value of investment properties included. And including the fair value of investment properties and hotels, the share price is a 59 per cent discount to the restated NAV per share of S$20.16.

Meanwhile, UOL’s share price of S$10.17 as at May 19 represents a 27 per cent discount to its end-2025 NAV per share of S$13.92. The company recognises fair value on investment properties as determined by independent professional valuers. However, the surplus on valuation of hotel properties amounting to S$1.8 billion as at end-2025 was not incorporated in its financial statements.

What  Hongkong Land  : H78 -0.38% unveiled in its strategy update in October 2024 can serve as a useful guide to CDL and UOL.

While CDL and UOL achieved significantly higher ROE in 2025 from the year before, their ROEs of 6.6 per cent and 4.1 per cent, respectively, are unexciting. Both groups could use their investment properties to establish private real estate funds and/or listed real estate investment trusts to leverage third-party capital for growing AUM and earning recurring fee-based income.

UOL could consider taking its listed subsidiary  Singapore Land Group  : U06 0% private to enhance operational flexibility and achieve cost savings. It could also divest its substantial holdings of financial assets, which include investments in  UOB  : U11 +1.23% and  Haw Par Corporation  : H02 -1.2%. UOL’s balance sheet as at end-2025 included financial assets worth over S$1.5 billion.

https://www.businesstimes.com.sg/opinion...hare-price

[weijian]

Review Group Completes Equities Market Review, Unveils SGX-Nasdaq Dual Listing Bridge, S$30 million “Value Unlock” Package, and Second Batch of EQDP Asset Managers

• The establishment of a dual listing bridge connecting the Singapore Exchange (SGX) and Nasdaq.
  
• The launch of a S$30 million “Value Unlock” Package to help listed companies unlock shareholder value and deepen engagement.
  
• Appointment of the second batch of asset managers under the S$5 billion Equity Market Development Programme  (EQDP), with a total of S$2.85 billion placed across six managers.
  
• Trading and market structure enhancements to strengthen market making, modernise post-trade custody, and reduce board lot size.
  

https://www.mas.gov.sg/news/media-releas...ket-review

Summary Infographic: https://www.mas.gov.sg/-/media/mas/news/...aphics.pdf

Board size reduction to be implemented in a few months' time.

SGX custody structure enhancements to take effect from July, board lot reduction in October

From 5 October 2026, the standard board lot size1 will be reduced as proposed:
• From 100 units to 10 units for instruments priced above $10 and up to $100; and
• From 100 units to 1 unit for instruments priced above $100.

SGX will conduct a review every calendar quarter to determine if additional instruments qualify for a reduced board lot size.

Board lot size reductions will remain even if stocks fall below the $10 and $100 thresholds.

https://links.sgx.com/FileOpen/20260701%...eID=895053