Singapore will enter 2021 with some good news - the commencement of its vaccine rollout. The vaccines – developed at unprecedented speed – opens up a “Window of Hope” for the global economy that has much been plagued by the COVID-19 pandemic for most of 2020.
Economically, Singapore can expect some level of travel-related and trading activities to return, while the Singapore Government is also expected to inject another shot of fiscal stimulus in its upcoming budget. Amidst this backdrop, most economists are expecting Singapore to rebound from recession and churn out strong growth numbers in 2021.
On the investment front, stocks of quality local-listed companies that have improved their balance sheets and strengthened their cash flows despite the crisis, will be better equipped to deliver stronger performance this year. Against the backdrop of a rebounding economy, such companies are also likely be among those to maintain or grow their dividends. Putting this in context to the frothy valuations of growth stocks elsewhere, a rotation from growth to value could play favourably to Singapore equities.