The local stock market, which finally reached a new high after 17 years, has managed to hold on to the interest of the majority of investors here, despite the growing attraction of overseas markets in the interim years.
Over 80% of investors here are interested or open to investing in Singapore stocks in the coming 12 months, with older investors allocating more due to familiarity and stability, according to a joint survey by the Securities Investors Association (Singapore) (SIAS) and financial portal Beansprout.
On the other hand, 16% of the respondents replied "no" to investing in Singapore.
The top three deterrents, as indicated by the results of the survey, are low returns, limited attractive options, and market liquidity. Above all, they prioritise the kind of returns they can make.
The results are collated from 1,011 respondents over a three-month period.
The respondents also prefer quality over quantity - in other words, they want better stock investment options rather than more choices.
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Investors here see analyst reports as a critical resource, playing a key role in influencing investment decisions and building confidence, especially among beginner investors.
For the respondents, financial news websites and article formats are key media for research reports, over traditional pdf reports by brokerages.
The respondents believe that greater access to research is essential to boost confidence in Singapore stocks.
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"Addressing investor concerns and enhancing market confidence are crucial to revitalising retail participation," says David Gerald, president & CEO of SIAS.
"SIAS urges greater collaboration between regulators, market operators, and listed companies to implement measures that improve liquidity, increase investor engagement, and enhance corporate transparency," he adds.
Gerald Wong, Beansprout's founder & CEO says that the survey highlights the vital role research reports play in shaping investment decisions and the need to make research more accessible to investors.
"By improving access to high-quality insights, we can boost confidence in Singapore stocks and empower retail investors to make well-informed choices. At Beansprout, we are committed to providing practical and objective insights to support investors in their financial journeys," he adds.
Investors who took part at a recent forum organised by SIAS have indicated their desire to see more high-growth and innovative companies to list on SGX.
Among other key findings from the forum, participants believe there is an opportunity to better connect with younger investors by leveraging digital-first investment solutions and making the stock market more accessible and relevant to them.
They believe that brokers can reduce trading fees so as to encourage greater retail participation in Singapore stocks.
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Investors increasingly prefer to access insights through digital platforms and interactive content, and highlighting the need for more user-friendly research formats.
Retail investors' participation can also be increased if the minimum board lot size can be reduced.
Last but not least, investors also emphasised the importance of investor protection and corporate governance, with a strong call for stricter enforcement of fiduciary duties for directors and company management to build trust and confidence in the market.
