SG Morning Highlights | Expert predicts continuity in growth and policies under PM Lawrence Wong

Advancers / Decliners is 79 to 48, with 49.94 million securities worth S$58.49 million changing hands.

Singapore's new Prime Minister Lawrence Wong is expected to continue on the same path and expand existing policies, amidst heightened risks the city-state is facing at home and globally, according to Bloomberg Economics. External risks such as de-globalisation and climate change are seen as the biggest threats to Singapore's economic growth in the coming years, while domestically, the rising cost of living and aging population are challenges to be addressed. The government's ample savings can support PM Wong and his initiatives to manage the impact on the economy. Bloomberg Economics sees Singapore's economy expanding by 0.8% this year and picking up to 1.8% next year and further to 3% in the long term, barring major external shocks.

The number of new home sales in Singapore dropped by 58.1% in April, with only 301 units exchanging hands, due to fewer launches and homebuyers becoming more selective. OrangeTee noted that new home sales volume has fluctuated over the past seven months, indicating that the launch of major projects significantly impacts sales volume. From January to April, the monthly average of developers' sales was 369 units, lower than the 2022 and 2023 averages of 616 and 556 units, respectively. Knight Frank suggested that homebuyers are now even more selective than before, taking their time to identify value opportunities that suit their lifestyle preferences. Huttons expects May sales to come between 150 and 250 units, while CBRE remains optimistic about the private residential market, expecting sales to reach around 7,000-8,000 units for the entire year.

Companies in Singapore scored high in terms of ethical culture, according to a new report by LRN Corporation. The "Benchmark of Ethical Culture 2024" revealed that Singapore scored 82%, higher than the global and APAC averages of 80%. The report surveyed over 8,500 employees in companies across 15 countries, 6% of which were from Singapore. Meanwhile, the report also revealed that 23% of employees around the world agreed that "it is OK to break the rules if needed to get the job done," and 14% said they "engaged in behavior that violated their company's Code of Conduct or standards" in the past year. The report noted that companies with strong ethical cultures have lower rates of observed misconduct and report their observation at a rate 1.5x higher than those in companies with weak cultures.