Singapore Market Focus - DBS Research 2020-04-07: Standing In Solidarity

Singapore Market Focus - DBS Research | SGinvestors.io DAIRY FARM INT'L HOLDINGS LTD (SGX:D01) SHENG SIONG GROUP LTD (SGX:OV8) STARHUB LTD (SGX:CC3) SINGTEL (SGX:Z74)

Singapore Market Focus - Standing In Solidarity




Offering a lifeline.

  • The Singapore government has introduced a third Solidarity Budget worth S$5.1bn aimed at saving jobs and protecting livelihoods during the month-long ‘circuit breaker’. The ‘circuit breaker’ involves only the opening of essential services such as food establishments, wet markets and supermarkets, clinics, hospitals, utilities, transport and key banking services.
  • Singaporeans are encouraged to stay at home as much as possible, and to avoid socialising beyond immediate family members during this period.
  • S$4bn goes towards additional support for businesses and workers while S$1.1bn is for Solidarity payment to Singaporeans. Singapore stands ready to save jobs and ensure that businesses survive during this uncertain period. The latest budget will draw S$4bn from past reserves.
  • The three COVID-19 support budgets over the past two months cost a total of S$59.9bn (12% of GDP). The overall budget deficit for FY20 will rise to S$44.3bn (8.9% of GDP).


Cost savings for businesses



Lower risk for banks.

  • The government’s decision to raise its risk share of Temporary Bridging Loan Programme, SME Working Capital Loan and Trade Loan Businesses to 90% (from 80%) lowers the risk for banks (UOB (SGX:U11), OCBC (SGX:O39)).


Support for households.






Kee Yan YEO CMT DBS Group Research | https://www.dbsvickers.com/ 2020-04-07
SGX Stock Analyst Report BUY MAINTAIN BUY 4.700 SAME 4.700
BUY MAINTAIN BUY 1.450 SAME 1.450
BUY MAINTAIN BUY 1.400 SAME 1.400
BUY MAINTAIN BUY 2.850 SAME 2.850



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