Why Singapore retail investors shun most locally listed stocks

A ROUTINE visit to my bank shortly after I moved to Singapore more than three decades ago sticks in my mind. The teller suggested an investment in a US equity fund.

Had I taken up the suggestion, my savings would have grown by more than 10 per cent a year, albeit not without volatility. That is, US$1,000 invested in the S&P 500 in 1990 would have grown to more than US$32,000 by end-November 2024.

A robust equity market goes a long way to charge up retirement savings. Its wealth-enhancing effect also wields multiplier benefits in terms of boosting consumption and business confidence, as well as helping to anchor activities in Singapore, such as fund management and other services.