Amid global growth challenges, Singapore is emerging as a 'relative safe haven' due to its low baseline tariffs and a resurgence in domestic demand.

The government's upcoming 2025 election budget is anticipated to include generous transfers, supported by a significant fiscal surplus of S$14.3 billion, or 1.9% of GDP, which could further stimulate domestic stocks.

Falling domestic benchmark rates are viewed positively for real estate investment trusts (Reits), with stress tests indicating resilience in retail and industrial rents even during economic downturns.

Reits and construction firms are particularly attractive investment options, with notable mentions including CapitaLand Integrated Commercial Trust and Bukit Sembawang Estates.

The consumer and healthcare sectors, represented by companies like Kimly, are expected to benefit from fiscal stimulus, while transport and communication firms like SBS Transit are likely to maintain stability due to steady domestic demand.

Industrial companies such as Sembcorp Industries and Keppel are well-positioned to thrive, supported by long-term contracts and robust order books that cater to domestic needs.

A construction boom is underway in Singapore, with contracts awarded seeing a remarkable 58% year-on-year increase up to February 2025, largely driven by public housing and major projects like Changi Airport Terminal 5.

Maybank has identified potential winners among Singapore-listed stocks with market capitalizations above S$400 million, particularly those deriving over 50% of their revenues locally from sectors like property, construction, industrials, consumer, and healthcare.

Despite Singapore's high trade dependency, Maybank's report suggests that domestic-oriented stocks could benefit from tariff volatility.

Historically, the Singapore government has responded to economic stress with strong stimulus measures, as evidenced during the pandemic when stimulus reached 14.4% of GDP.