Ask ten people what “the best stock to buy in Singapore” is and you’ll get ten different answers, most of them anecdotal. Instead of naming a single winner (which would age badly and isn’t real advice), here’s how to actually think about your options on the Singapore market — and the categories worth researching further.
Nothing in this article is a recommendation to buy any specific security. It’s informational content to help you understand the landscape and do your own research, or talk to a licensed financial adviser about your specific situation.
Start with what “best” actually means to you
Before picking any stock, get clear on what you’re optimising for:
- Income — you want regular dividend payouts.
- Growth — you’re willing to accept more volatility for potential capital appreciation.
- Stability — you want lower-volatility, established names even if the upside is capped.
- Diversification — you want broad market exposure rather than betting on individual names.
These goals point to very different parts of the market, and conflating them is one of the most common mistakes new investors make.
The Straits Times Index (STI) blue chips
Singapore’s benchmark index, the STI, is made up of around 30 of the largest and most liquid companies listed on the Singapore Exchange (SGX) — the three local banks (DBS, OCBC, UOB), Singtel, the SGX itself, major REITs, and a handful of industrial and conglomerate names.
These are generally the most-researched, most-covered stocks on the local market, which cuts both ways: there’s plenty of analysis available, but that also means the “easy” mispricings are less likely to exist, since institutional investors are watching closely too.
REITs: Singapore’s dividend workhorses
Real Estate Investment Trusts are a distinctly large part of the SGX, covering retail malls, offices, industrial parks, data centres, and healthcare properties. REITs are required to distribute the bulk of their taxable income to unitholders, which is why they’re popular with income-focused investors.
The trade-off: REIT prices are sensitive to interest rates (higher rates generally pressure REIT valuations and borrowing costs), and not all REITs are equally well-managed — gearing levels, sponsor quality, and the underlying property portfolio all matter a lot more than the headline yield.
Bank stocks
DBS, OCBC, and UOB are core holdings in many Singaporean portfolios, partly because they’re well-capitalised, well-regulated, and have historically paid solid, fairly consistent dividends. Bank earnings are tied to interest rate cycles and loan growth, so they’re not immune to macro swings, but they’re often viewed as a relatively stable core holding rather than a speculative bet.
Broad-market ETFs
If picking individual stocks isn’t something you want to spend time on, ETFs that track an index give you instant diversification in one purchase. On the SGX and through local brokers, you can access:
- STI-tracking ETFs — exposure to the local blue chips in one fund.
- Regional/global ETFs — broader exposure beyond Singapore, including funds tracking developed or emerging markets.
- Sector-specific ETFs — like technology-focused funds, for investors wanting targeted exposure without picking individual names.
ETFs typically carry a much lower expense ratio than actively managed funds and remove single-stock risk, at the cost of also capping your upside to whatever the underlying index does.
How to actually evaluate a stock before buying
Whatever you’re looking at, a few basics are worth checking rather than skipping:
- Business fundamentals — revenue and earnings trends, not just the share price chart.
- Dividend history and payout ratio — a high yield that isn’t sustainably covered by earnings can get cut.
- Valuation — how the price-to-earnings or price-to-book ratio compares to its own history and to peers.
- Debt levels — especially important for REITs and capital-intensive businesses.
- Your own time horizon — a stock that’s “good” for a 10-year hold and one that’s “good” for a 6-month trade are often not the same stock.
The bottom line
There’s no single “best stock” in Singapore that stays best forever — markets move, company fundamentals change, and what suits one investor’s goals may be wrong for another’s. Blue chips, REITs, bank stocks, and broad ETFs each serve different purposes in a portfolio. Do the homework on fundamentals and valuation rather than chasing a headline yield or a name a friend mentioned, and if you’re unsure, a licensed financial adviser can help you think through what fits your actual situation.