Sheng Siong, DBS among winners of Singapore’s S$1 billion energy support package: RHB

[SINGAPORE] Investors should pivot towards companies with strong pricing power and direct policy linkage as Singapore navigates an energy-driven “cash-flow cushion”, RHB said in a strategy report on Wednesday (Apr 8).

On Tuesday, Singapore announced a S$1 billion support package in response to the Middle East energy shock.

“The policy architecture is not a demand stimulus but instead a targeted cash-flow cushion designed to preserve household purchasing power for essentials,” RHB said.

Identifying the beneficiaries and laggards, RHB analyst Shekhar Jaiswal said: “The clear winners are heartland consumption, suburban retail real estate investment trusts and domestic land transport, while aviation faces headwinds and cost pressure.”

Heartland retail and staples in the lead

The brokerage identified Sheng Siong , Frasers Centrepoint Trust ( FCT ) and CapitaLand Integrated Commercial Trust ( CICT ) as clear winners of the package.

“The most direct equity beneficiaries of the government package are concentrated in consumer staples and suburban heartland retail,” Jaiswal said.

“Supermarket operators and suburban mall landlords with necessity-led tenant mixes are first-order beneficiaries, while more discretionary or tourism-dependent retail formats will see limited benefit,” he added.

Bringing forward the release of S$500 in Community Development Council Vouchers from September to June and enhancing Cost-of-Living payments are expected to drive immediate footfall to heartland supermarkets and suburban malls.

RHB noted that prior voucher cycles have consistently shown a measurable uplift in mall footfall and rental reversions.

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FCT, with its portfolio anchored in Housing & Development Board heartland catchments such as Causeway Point and Northpoint City, is viewed as the “purest heartland retail proxy”.

Similarly, Sheng Siong is expected to benefit from “trade-down demand” as cost-conscious households shift towards value-oriented grocery formats.

CICT is also favoured as a secondary beneficiary.

The trust’s suburban and integrated mall assets, including IMM, Junction 8 and Tampines Mall, benefit from the same voucher-driven footfall dynamics as FCT, though its Central Business District office exposure may dilute the purity of the retail voucher play.

RHB also identified ComfortDelGro as a transport beneficiary.

“The government’s measures of co-funding the cost increases for essential transport services, including school bus routes, senior mobility and disability services, could provide a margin backstop for ComfortDelGro’s bus division, and the cash relief for taxi drivers and platform workers could reduce fleet churn,” Jaiswal said.

Banks and utilities as macro hedges

As the Middle East conflict continues to drive energy prices higher, RHB recommends Sembcorp Industries as a primary macro hedge.

The upcoming Q3 electricity tariff reset is expected to be materially steeper, which will benefit generation asset owners with both regulated and merchant capacity.

“Sembcorp benefits directly from both the regulated tariff reset in Q3, which will fully reflect the doubled fuel price for the first time, and from unregulated merchant power pricing in a high-energy-cost environment,” RHB said.

For the banking sector, RHB maintains a “buy” rating on DBS and OCBC .

A hawkish tone from the government suggests that 2026 headline inflation will exceed prior forecasts.

This environment should keep elevated Singdollar rates in place, which is expected to remain a net positive for net interest margins across the three Singapore banks.

The government’s broader fiscal response also injects liquidity into the economy and supports transaction banking activity.

Names to be cautious on

In contrast, RHB remains cautious on Singapore Airlines and Sats .

The aviation sector faces unmitigated fuel cost pressure and route disruptions through Middle Eastern airspace, which add significant distance and fuel burn to Europe-bound flights, RHB said.

“Officials specifically warned that air transport, sea transport and tourism face higher costs and weaker demand, and the deferral of the sustainable aviation fuel levy – which we believe is marginally helpful – does not alter the fundamental economics of airlines facing jet fuel costs that have roughly doubled,” Jaiswal noted.