This week, Singapore’s financial markets will be keenly focused on the latest indicators of economic stability and key corporate results. Investors are set to monitor fresh insights into the nation’s economic performance and the Monetary Authority of Singapore’s (MAS) approach to monetary policy, alongside quarterly results from some real estate investment trusts (REITs).
1. MAS Policy Decision
The MAS is set to release its quarterly monetary policy statement on October 14. Analysts widely anticipate that the MAS will refrain from altering its policy due to ongoing inflation and growth uncertainties driven by geopolitical tensions. Inflation remains persistent; although it has decreased from a peak of 5.5% in early 2023, it stood at 2.7% year-on-year (YoY) in August. The central bank projects core inflation to ease more significantly in the final quarter, ranging between 2.5% and 3.5% for the year.
2. Economic Performance Update
Also on October 14, the Ministry of Trade and Industry (MTI) will release the advance GDP estimates for the third quarter of 2024. Following a modest growth of 0.4% quarter-on-quarter and 2.9% YoY in Q2 2024, the upcoming figures will provide further insights into the country’s economic momentum. The Q2 reading was supported by sectors such as wholesale trade, finance, insurance, and information and communications. The government has revised its 2024 GDP growth forecast to 2% to 3%, with expectations leaning towards the upper end of this range.
3. September Non-Oil Domestic Exports (NODX)
Singapore’s non-oil domestic exports (NODX) grew by 10.7% YoY in August 2024, though this fell short of market expectations of 15%. The growth in exports has been largely driven by demand for electronic products, but with ongoing uncertainties in global trade, the September NODX data will provide an updated view of external demand. Investors will be keen to see whether the NODX continues its upward trajectory or faces new challenges.
4. REIT Results
Several REITs will release their quarterly results this week. Parkway Life REIT (SGX: C2PU), a prominent healthcare-related REIT, will share its Q3 FY2024 business update. As one of the largest players in the healthcare real estate sector, Parkway Life REIT’s results will give investors a glimpse into the stability of healthcare properties.
Keppel DC REIT (SGX: AJBU), specializing in data centre investments, will also report its Q3 FY2024 results. The REIT has benefited from growing demand for digital infrastructure, but investors will be watching closely for any signals of slowing growth in this segment.
Meanwhile, Sabana Industrial REIT (SGX: M1GU), with portfolios consisting of industrial, warehouse, and logistics properties, will release its Q3 FY2024 update too, offering further clarity on trends within Singapore’s industrial property market.
With these critical updates on economic stability and REIT performance, this week will be essential for investors keeping a close eye on Singapore’s market trajectory.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
References
Economic Calendar | SGX Academy
Singapore seen keeping monetary policy unchanged as inflation risks linger | Reuters
Release of Advance GDP Estimates for Third Quarter 2024 | MTI SG
Singapore key exports up 10.7% in August, boosted by demand for AI-powered electronics | The Straits Times
