Will business owners sacrifice near-term value to help develop Singapore’s bourse?
Fears of a hard landing for the US economy sent stock markets in the US, Europe and Asia, including Singapore, plunging in early August.
Still, a slowing US economy may not hurt Singapore businesses that much. Many local businesses can count on growth in South-east Asia and a resilient domestic economy, where the government has ample fiscal firepower to fuel growth.
Moreover, lowering of interest rates in the US and elsewhere to combat slowing economic growth will help many businesses by reducing financing costs and share prices of listed entities as investors apply lower discount rates to future earnings. Also, many local stocks are generally defensive and pay good dividends.
