How Singapore’s new budget measures are expected to boost key sectors and specific stocks.
SINGAPORE: Singapore’s Budget 2024, unveiled last Friday, marks a significant milestone in the nation’s strategy to tackle economic challenges. As inflation continues to rise, the Budget introduces several key measures aimed at alleviating the burden on individuals and businesses. These initiatives include financial assistance for citizens, investments in strategic sectors, and efforts to promote innovation.
As noted by The Smart Investor, these changes are likely to have a profound impact on specific stocks. Here are seven Singapore stocks poised to benefit from the measures introduced in Budget 2024:
Sheng Siong and DFI Retail Group
Retailers like Sheng Siong and DFI Retail Group stand to benefit from an expected rise in consumer spending on groceries and daily necessities, driven by financial assistance. Singaporeans are set to receive a cost-of-living “special payment” of between S$200 and S$400, which is likely to be spent on everyday essentials, boosting these retail stocks.
Mindchamps Preschool
Mindchamps Preschool is positioned to benefit from the rise in demand for childcare services, as lower childcare fees and increased subsidies are introduced. The government has capped full-day childcare fees in government-supported preschools and increased subsidies, especially for children from lower-income families. Additionally, more families will receive top-ups to their Child Development Accounts under the ComLink+ Progress Packages, further benefiting Mindchamps.
AEM Holdings and Venture Corporation Ltd
AEM Holdings and Venture Corporation Ltd are set to gain from the government’s significant investment in artificial intelligence (AI). With S$1 billion earmarked for the development of AI computing infrastructure, talent, and the industry over the next five years, companies in this sector, including AEM Holdings and Venture Corporation Ltd, are poised for growth.
Raffles Medical Group and IHH Healthcare Berhad
Healthcare providers like Raffles Medical Group and IHH Healthcare Berhad are expected to benefit from the government’s initiatives aimed at improving healthcare for seniors. The S$3.5 billion Age Well SG initiative will drive increased demand for healthcare services. Additionally, seniors born in 1973 or earlier will receive Medisave bonuses, further boosting healthcare needs.
With these measures, Singapore’s Budget 2024 is set to have a positive impact on specific sectors, providing a boost to businesses and stocks in key industries.
