I think it might not be one factor:
- The weakening USD, and the outlook, made investors more uncertain and capital flowing back into SGD needing to find a home.
- The stocks are not too expensive historically as well.
- Could be the result of the non-US wave of equity markets restructuring that I have talked about. In Singapore, it would be the S$5 billion Equity Market Development Program: Commentary: Singapore’s S$5 billion bet on the stock market
- Part of the rules to setup more family offices here.
End of the days flows and participation does matter to the vibrancy of the market. If you encourage fund managers to participate, then that might help a bit. I am usually skeptical about a lot of these initiatives because they are usually pretty non-starting but I can see multiple prongs working.
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