On the other hand, JPMorgan is “neutral” on both Indonesia and Malaysia as their “risk/upside trade-off is balanced by selective bottom-up catalysts in growth sectors.” The bank has an “underweight” rating for Thailand as they are await for further stability in the country’s policies after their upcoming elections. Thailand is set to go to the polls on Feb 8, 2026.
JPMorgan’s analysts argue that a bearish view on the US dollar will be a positive for Asean countries, because it has already driven governments “to ramp up fiscal stimulus and monetary easing.”
“Our end-2026 index target for the MXSO is 850 (~15% upside) with a bear/bull case of 660/900. This return is driven by a combination of both earnings growth (7%) and valuation re-rating (8%),” the analysts write. MXSO refers to the MSCI South East Asia index.
Singapore stocks still have room to grow in 2026
Singapore stocks will continue to reach “new highs on the back of strong support from value-unlocking initiatives, a surge of capital inflows into the country and a solid fiscal buffer,” say JPMorgan analysts Harsh Wardhan Modi, Mervin Song and Ranjan Sharma.
In August 2024, the Monetary Authority of Singapore (MAS) set up a review group to propose measures to revitalise Singapore’s stock market. The group’s final report was released on Nov 19, and included measures such as an $5 billion Equity Market Development Programme fund to channel capital into the Singapore stock market, and a “Value Unlock” programme to guide listed companies on areas such as investor relations and corporate strategy.
According to JPMorgan, Singapore equities still have “a long way to go” as the government continues to implement the review group’s recommended measures. They expect the measures to boost listings and trading activities over the longer term.
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“We see potential for Singapore corporates to recycle their holdings and improve shareholder returns,” the analysts write, adding that they expect the measures to drive return on equity (ROE) to a historical high of 12% (against the current 10%) and bring price-to-book valuation ratios closer to Asia’s average at 2 times (against the Straits Times Index's (STI) current 1.6 times).
JPMorgan believes the new measures will have a “positive impact” on Singapore equities, particularly in sectors and stocks with a lower ROE than in the past or against their regional peers. This include sectors such as real estate, information technology, and consumer. 48% of companies in Singapore have ROE values that are higher than their cost of equity, comparable to Japan (50%) but lower than the US (over 80%).
JPMorgan sees the push to improve shareholder value as helping companies in three key ways: slimming down their balance sheets by paying dividends or buying back shares, shifting their capital allocation by recycling assets or spin offs and improving visibility on their long-term visions and strategic growth objectives.
The bank’s top picks for Singapore in 2026 as follows: DBS Group Holdings, Keppel Limited, City Developments, CapitaLand Integrated Commercial Trust, Singapore Technologies Engineering, Sea, and Singapore Telecommunications. With the exception of Sea which is listed on the New York Stock Exchange, the rest are listed on the Singapore Exchange.
Singapore’s stocks have been rallying amid the central bank's push to stimulate local equities. The STI is up by nearly 21% year to date. Mid-cap stocks have gained as well. The iEdge Singapore Next 50 Indices, which tracks the next 50 largest companies after Singapore's top 30 blue chips, have generated an 18% total return in 2H2025 to Nov 4.
