7 Singapore stocks set to soar with SG Budget 2024

Feb 20, 2024

SINGAPORE: Singapore’s Budget 2024, announced last Friday, marks a significant milestone in Singapore’s efforts to navigate through economic challenges.

With inflation on the rise, the Budget introduces a series of measures to mitigate the impact on individuals and businesses alike. These changes include financial assistance, investment in key sectors, initiatives to support families, and the promotion of innovation.

As highlighted by The Smart Investor, these changes are expected to impact specific stocks in the market. Here are seven Singapore stocks that will gain from Singapore Budget 2024.

Sheng Siong and DFI Retail Group

Sheng Siong and DFI Retail Group are going to benefit from increased consumer spending on groceries and daily necessities, driven by the financial assistance measures introduced in Budget 2024.

Singaporeans will receive a cost-of-living between S$200 to S$400 “special payment”, which is expected to be used for daily necessities, boosting these retailers.

Mindchamps Preschool

As demand for childcare services is anticipated to rise due to lower childcare fees and higher subsidies, Mindchamps Preschool is to gain from increased enrollment.

Full-day childcare fee caps in government-supported preschools will be lowered, and children from lower-income families will receive higher subsidies, including those with non-working mothers.

Additionally, lower-income families will see top-ups to their Child Development Account through the ComLink+ Progress Packages.

AEM Holdings and Venture Corporation Ltd

AEM Holdings and Venture Corporation Ltd are well-positioned to capitalise on the significant investment in AI infrastructure and talent under the National AI Strategy 2.0, driving growth in the sector.

S$1 billion will be channelled into developing AI computing infrastructure, talent, and the industry over the next five years, providing ample opportunities for companies in this space.

Raffles Medical Group and IHH Healthcare Berhad

Healthcare operators are expected to benefit from initiatives to improve seniors’ healthcare options, leading to increased demand for healthcare services in Singapore.

The government will set aside S$3.5 billion over the next decade for the Age Well SG initiative, which includes upgrades to residential estates, improvements in commuter infrastructure, and the development of more assisted living options and better home care arrangements for seniors.

Moreover, seniors born in 1973 or earlier will receive bonuses to their CPF Retirement and Special accounts and a one-off Medisave Bonus between S$750 and S$1,500 under the Majulah Package.

These healthcare initiatives under Age Well SG and Healthier SG are expected to drive demand for healthcare services provided by companies like Raffles Medical Group and IHH Healthcare Berhad. /TISG

Read also: 4 Singapore REITs that will make your CPF investment sing

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