For new investors, Singapore is a convenient launchpad: transparent regulation, a deep market, and straightforward tax treatment for individuals. Start with the plumbing. To own SGX-listed shares in your name, open a Central Depository (CDP) account and link it to a broker. Alternatively, choose a custodian broker for potentially lower costs and multi-market access, noting that your shares are held under the broker’s custody.
Next, grasp the tax landscape and costs. Individuals are not taxed on capital gains in Singapore, and dividends from Singapore-listed companies are usually tax-exempt for individuals. However, foreign dividends often face withholding taxes in the source country. Fees—commission, platform, and exchange levies—compound over time; reducing them is a quiet but powerful edge.
Choose simple, robust strategies that you can execute consistently. A common approach is a “core-satellite” portfolio: hold a broad market ETF such as an STI tracker as your core, then add satellites like high-quality REITs or blue-chip stalwarts. Blue chips in Singapore often exhibit resilient earnings and steady dividends, while REITs can provide income but are sensitive to interest rates and leverage. Always check gears, occupancy, and refinancing timelines for REITs to avoid surprises when rates shift.
Use dollar-cost averaging to build positions gradually. The routine helps you invest through cycles without the paralysis of market timing. Set a monthly cadence, automate if possible, and review allocations a few times a year. Keep an emergency fund outside your brokerage so you’re not a forced seller during dips.
Research doesn’t need to be complicated. Focus on a company’s business model, revenue drivers, and competitive position. For consumer businesses, watch same-store sales and margins; for banks, keep an eye on asset quality and net interest margin; for industrials, observe order books and input costs. Read SGX filings for updates on acquisitions, share buybacks, and management commentary. Revisit your thesis if the facts change.
Risk management separates investors from speculators. Avoid oversized positions, especially in low-liquidity small caps. Diversify across sectors and, if you venture overseas, be mindful of currency risk and foreign market rules. Rights issues are part of Singapore’s market culture; if a company raises capital, evaluate whether to subscribe, sell the rights, or adjust your stake.
Keep your expectations steady. Markets move in bursts, and Singapore’s is no exception. The goal isn’t to forecast every twist but to build a process: low costs, broad exposure, selective adds, and periodic rebalancing. Over time, consistency beats bravado.
