SG Morning Highlights | LHN Expands Portfolio with Additional Keys and Car Parks in Q3 FY2024

Advancers / Decliners is 83 to 52, with 62.46 million securities worth S$72.40 million changing hands.

Anticipated interest rate cuts in 2024 are expected to particularly benefit S-REITs with a larger proportion of floating rate loans. CDL Hospitality Trusts, Far East Hospitality Trust, Suntec REIT, OUE Commercial REIT, and Lendlease Global Commercial REIT stand to gain the most, as they have only 50-60% of their loans hedged at fixed rates. The retail sector may see the greatest upside from the rate cuts, with caution advised for the hotel sector due to potential demand softening.

Singapore has been recognized for its business-friendly environment in the 11th edition of the Global Business Complexity Index (GBCI), where it was ranked as the 47th least complex jurisdiction out of 79 for business operations. The GBCI commends Singapore for being an accessible location for first-time foreign companies setting up there, while also noting the rigorous Anti-Money Laundering (AML) measures and regulatory frameworks that can increase reporting responsibilities for businesses. Local tax regulations and mandatory pension contributions, although designed for transparency and robust employee protection, contribute to the complexity of payroll processes. Nonetheless, Singapore remains attractive to businesses due to its clear regulations, strong legal systems, and efficient government services. The nation's long-standing political stability and investment in business infrastructure, supported by a well-educated and skilled workforce, reinforce its position as a globally competitive business hub.