Local stocks remain top pick for Singapore investors

While global market sentiment remains shaky, Singaporean investors appear largely unmoved. According to a survey conducted in April 2025 by digital brokerage Moomoo Singapore, nearly 70% of retail participants still count local stocks as a core component of their investment portfolios. It's a clear signal of enduring faith in Singapore's macroeconomic fundamentals.

What underlying behaviors and policy perceptions does this reveal? And how does this investment posture stack up against regional shifts? Let’s unpack the numbers

Seven in 10 respondents named Singapore-listed equities as essential to their portfolios. That’s not just habit—it’s conviction. Investors seem to be saying that Singapore offers something the rest of the world currently lacks: stability, clarity, and institutional reliability. Gavin Chia, CEO of Moomoo Singapore, described the country as a “pillar of stability.” This isn’t just promotional language. The continued trading volume on the SGX backs his point, suggesting that investor sentiment is translating directly into activity.

In a year when inflation, rate confusion, and geopolitical tension have shaken markets elsewhere, Singapore’s steadiness offers more than comfort—it offers a logic for capital preservation. With tight fiscal discipline and predictable monetary policy, local investors, especially those planning for the medium term, have reason to stay the course.

There’s also a strong psychological element. Singapore’s track record of managing economic shocks—be it the COVID-19 downturn or regional financial crises—has instilled confidence that the system works. For risk-conscious investors, trust in the system is often more valuable than aggressive upside.

Yet not everyone is anchoring at home. About 40% of investors surveyed said they’re reallocating a portion of their portfolios to overseas markets—particularly Hong Kong. For them, the logic isn’t contradiction. It’s complement. Rather than signaling dissatisfaction with local assets, this trend reflects a barbell approach: combine the security of Singapore with the potential upside of undervalued or policy-sensitive foreign markets.

Hong Kong stands out as a speculative favorite. Years of underperformance may be giving way to fresh opportunity, driven by gradual policy shifts in mainland China and hopes of recovery in the real estate sector. For investors chasing rebound potential, especially those with higher risk thresholds or longer timelines, these markets offer an alternative growth narrative.

It’s a generational bet as well. Younger investors, more accustomed to digital platforms and global news cycles, are the ones most likely to act on conviction and volatility alike. Diversification across geographies also reflects a changing mindset. Investors aren’t abandoning the home market—they’re hedging against the very uncertainty that makes Singapore attractive in the first place. Risk appetite hasn’t vanished; it’s being deployed more strategically.

Nearly 40% of Singapore-based users on Moomoo currently hold crypto assets—a figure that surprises only those who underestimate how mainstream digital assets have become. Even more telling: close to a third plan to increase their holdings in the next six months.

This isn’t fringe behavior anymore. Crypto is staking out a place in the modern retail portfolio. Of course, some of that reflects Moomoo’s user base—digital-first, mobile-native, and comfortable navigating volatility. But there’s a larger shift underway. MAS’s stance has been both cautious and enabling. By building a regulatory lane rather than a blockade, Singapore has allowed crypto to evolve into a legitimate, if still high-risk, complement to traditional asset classes.

The narrative here isn’t about replacement. Retail investors aren’t dropping stocks for tokens—they’re diversifying into new risk buckets, eyeing asymmetric returns in an environment where traditional yield is hard to come by. What’s more, crypto uptake in Singapore tracks with a broader shift in financial literacy. Younger investors increasingly treat their portfolios as adaptable systems, not static holdings. Crypto, in that context, represents both exposure and experimentation—a proxy for optionality in volatile times.

Investor confidence falters when the lens shifts to global markets. Just 30% said they were optimistic about the second half of 2025—a statistic that speaks volumes about how geopolitical instability and policy uncertainty are weighing on outlooks. This wariness isn’t theoretical. It’s shaping behavior. Investors with financial obligations—be it property, education, or retirement—are dialing back exposure to volatile markets. For them, peace of mind matters more than chasing marginal alpha.

Dividend-rich local equities and stable, government-linked firms on the SGX are the practical beneficiaries of this shift. Add to that the unpredictable regulatory environments abroad, and the case for international deployment becomes harder to justify—at least for now.

Some cite China’s policy uncertainty, US election volatility, and Middle East tensions as ongoing reasons for their hesitation. For many retail investors, the path of least resistance is the one paved with predictability. In that context, staying local feels less like playing it safe—and more like playing it smart.

Singapore’s investors are clearly playing a different game. In Hong Kong, many retail participants have pulled back from domestic equities amid persistent property sector concerns. Japan tells a different story altogether, where institutional reform has drawn large foreign inflows. By contrast, Singapore retail behavior skews risk-conscious. There’s enthusiasm for digital tools and platforms, but asset allocation remains conservative. Local equities dominate the base, while crypto and foreign markets function as measured add-ons.

This conservative layering mirrors policy tone. MAS doesn’t encourage speculation, but it doesn’t restrict participation either. Instead, it emphasizes education and structural safeguards—an approach that attracts serious, long-term retail investors.

In markets like South Korea or the US, retail flows often swing dramatically. In Singapore, the rhythm is steadier, shaped not just by policy but by cultural expectations around wealth accumulation and financial safety. Institutional consistency plays a role too. Singapore’s sovereign wealth framework, mandatory savings via CPF, and conservative leverage norms all contribute to investor behavior that prizes continuity over swings.

Investor behavior in Singapore isn’t just a reflection of market trends—it’s a referendum on trust. Regulation, macro credibility, and platform maturity are all reinforcing a shared investor instinct: stay grounded, but stay flexible. The cautious exploration of crypto and overseas exposure doesn’t undermine that foundation. It builds on it.

So what does this mean for policymakers? It’s simple, yet powerful. Access is only as good as the confidence it inspires. And in Singapore’s case, that confidence is being quietly rewarded—one well-anchored portfolio at a time.

More importantly, this moment reflects a deeper recalibration of what constitutes “safe” investing. For many retail investors, safety isn’t about fleeing volatility altogether—it’s about knowing which institutions will remain intact when the dust settles. Singapore has, through years of regulatory clarity and prudent fiscal governance, cultivated a reputation for just that. It’s not just a safe harbor; it’s a system that earns loyalty because it functions with predictability and intent.

This offers a quiet but potent lesson for regional markets hoping to deepen their retail base: stability isn’t a message—it’s a mechanism. It must be built, maintained, and communicated at every level of the capital system. For the broader region, Singapore offers a glimpse of what calibrated, confidence-based retail participation can look like. It’s not just about offering tools—it’s about cultivating conviction.