Singapore population growth to help property, transport: DBS
Source: Dow Jones & Co, Inc | Publish date: Fri, 18 Jan 17:24 | >> Read article in News website
Singapore’s likely population growth trajectory could benefit the city-state’s property developers, construction, transportation and healthcare firms, says DBS.
The house expects the government to use a 7 million population-planning parameter in the upcoming population white paper, up from 6.5 million, and projects the city-state’s 5.3 million population to reach 7 million by 2030, implying average growth of 1.5% per year.
In this scenario, DBS prefers ComfortDelGro (C52.SG) over SMRT Corp. (S53.SG) among transport operators, citing the former’s stable growth profile and geographical exposure.
It also likes construction-resource providers Tat Hong (T03.SG), Pan-United (P52.SG) and Sin Heng (KF4.SG) over pure contractors.
Among developers, the house favors Wing Tai (W05.SG) for its Singapore exposure, CapitaLand (C31.SG) for its diversity and China exposure, and Mapletree Commercial Trust (N2IU.SG).
Meanwhile DBS also backs stem-cord blood bank Cordlife Group (P8A.SG) as a healthcare play.