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JP Morgan and CLSA pick beneficiaries of Budget 2026

The Edge Singapore
The Edge Singapore  • 2 min read
JP Morgan and CLSA pick beneficiaries of Budget 2026
JP Morgan and CLSA pick beneficiaries of Singapore Budget 2026, including AI plays
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The message from the Singapore Budget 2026 is that the government will maintain a strong fiscal buffer, while continuing to reinvest and transform the economy. JP Morgan says this should fuel growth in the private sector. “We believe these tailwinds, together with an extension of financial market support, should drive Singapore equities closer to our STI 6,000 target. Our top picks are DBS Group Holdings, Singapore Exchange, UOL Group, Keppel, CapitaLand Integrated Commercial Trust (CICT), City Developments, Singapore Technologies Engineering, Singapore Telecommunications, Grab and SEA." Grab and SEA are listed on Nasdaq.

JTC plans to establish an AI park in One-North to provide spaces near research clusters for start-ups researchers and industry partners. This should attract more companies to One-North, ultimately benefitting CapitaLand Ascendas REIT.

The continued payout of CDC vouchers should also boost spending in supermarkets. On the property front, Frasers Centrepoint Trust, CICT, and Mapletree Pan Asia Commercial Trust should benefit.

CLSA likes CICT, DBS, FCT, Singtel, ST Engineering and MPACT as well. “Singapore’s 2026 budget strikes a pragmatic balance between easing cost‑of‑living pressure and reinforcing growth, supporting domestic demand and local equities,” CLSA says.

Broad-based cash handouts and targeted support for households, workers, seniors and SMEs should deliver near-term stimulus along with fiscal prudence that preserves policy flexibility, CLSA adds.

“Over the longer run the government targets growth at the top end of the 2%–3% range, with AI positioned as a core lever to drive quality job creation and income growth while offsetting ageing and labour constraints,” CLSA says. Against this background, the beneficiaries also include AEM Holdings, Keppel DC REIT, UMS Integration, and Venture on the tech front while Sheng Siong and Suntec REIT will benefit from income growth and the additional CDC vouchers, U-save, new Child LifeSG Credits and Cost of Living Special Payment.

See also: Maybank's Seet raises target price for ISOTeam to 12 cents on brighter outlook

UOB Kay Hian would inevitably be a beneficiary of further interest in the equity market. Banks should benefit from broader economic growth, hence CLSA includes Oversea-Chinese Banking Corp and United Overseas Bank among its top picks.

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