Analysts Predict S’pore Stocks Will Do Better After Elections
image from MS News.
After the 2020 General Elections (GE) has just ended and worrying about the slide of the ruling party or a triumph of a new ruling party as the recent results show that the opposition took more seats in Parliament. While some others are getting worries over the Covid-19 pandemic in which it places a huge impact on the economical sector around Singapore.
As the analyst after being interview by the international business news company Bloomberg, the Economist and political strategies Prasenjit K. Basu mentioned that with the recent changes in parliament and also due to other countries that are slowing on their growth. It might be a good time to check out the market dips sector.
The reason is that the opposition Workers’ Party (WP) have an impact on the Government’s policies which are:
- The linking of the Central Provident Fund’s (CPF’s) interest rate to 10-year returns generated by the Government Investment Corporation of Singapore.
- Paid parental leave
- A minimum wage for non-foreign workers
Plus, WP doesn’t have majority seats to enact the policy of the Government to boost consumption and social investment. Furthermore with the Government focusing more on the manufacturing sectors. While some other countries such as Hong Kong due to its protest and China’s tightening grip, it is providing chances for Singapore to compete with cities like Tokyo, Taipei, Mumbai, and Seoul.
So as the Straits Times Index saw declines in the months after Singapore’s GE1988, GE1991 and GE2006, and the markets have already seen the worst currently due to the Covid-19, it will certainly bounce back and it will be a great time for those who have extra savings to think about spending it onto the markets dips and wait for the rebounce market trend to happens.