Singapore stocks and T-bill yields climb while fixed deposit rates fall: Weekly Market Recap

Happy New Year!

As we step into 2025, I spent the last few days of 2024 reflecting on the changes ahead and how we can best prepare for them.

First up, for working adults, CPF contribution changes take effect from 1 January 2025. We break down what this means for your take-home pay and retirement planning.

Next, we’ve also noticed continued volatility in global interest rates, which has led to a dip in the best fixed deposit rates and savings account rates in January 2025. 

Similarly, the interest rate on the latest Singapore Savings Bond (SSB) is lower than last month. On a brighter note, the yield on the latest 6-month Singapore T-bill edged up slightly to 3.05%.

Another key change this month is the closure of the CPF Special Account (SA) for those aged 55 and above.

I’ve been looking into ways to navigate these changes and will be sharing my thoughts in the coming week. If there’s anything you’d like us to cover, don’t hesitate to reach out.

Wishing you success and prosperity in 2025!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📈 Singapore’s growth surprises 

What happened? 

Singapore’s economy grew 4% in 2024, surpassing the official forecast of “around 3.5%” and achieving its fastest growth in three years.

In the fourth quarter, the economy recorded a modest 0.1% expansion compared to the previous quarter, driven by accelerated growth in the construction sector, boosted by increased public sector activity.

What does this mean?

The Ministry of Trade and Industry maintained its 2025 growth forecast for Singapore at 1% to 3% despite the stronger than expected growth in 2024. 

Similarly, private-sector economists have largely held on to their projections for 2025, citing potential risks from US President-elect Donald Trump’s proposed tariff plan and the possible escalation of geopolitical tensions.

Why should I care? 

Singapore stocks kicked off 2025 on a positive note, building on their stellar 23.5% total return in 2024—the best annual performance in over a decade.

Earlier, we highlighted the top-performing blue-chip stocks and best-performing REITs of 2024.

Check out our guide to investing in Singapore through an ETF, or screen for Singapore dividend stocks with the most upside to consensus share price target.  

🚗  Moving This Week

• OCBC has agreed to sell its entire 33.3% stake in Hong Kong Life Insurance to a Hong Kong investment holding company for HK$589.3 million (S$103 million). Read more here.
• SingPost has reaffirmed its ongoing strategy of divesting non-core businesses and assets, and that the transformation of its domestic postal business is going ahead as well. Read more here.
• Keppel DC REIT announced it is divesting the Basis Bay Data Centre in Cyberjaya, Selangor Darul Ehsan, Malaysia for RM55.6 million ($16.9 million), 2.6% above the assessed market value of the asset. The divestment is expected to be completed around 3Q2025. Read more here.
• Digital Core REIT announced that its customer’s option to renew the lease for 8217 Linton Hall in Northern Virginia, expired unexercised on Dec 31, 2024. The building contributed 11% of its annualised rent as at Sept 30, 2024. According to the REIT manager, every month of downtime is expected to reduce its distribution per unit (DPU) by about 0.06 cents. Read more here.
• Frasers Hospitality Trust (FHT) said that it was unaware of the “specific reason” behind a nearly 40% surge in the price of FHT’s stapled securities over the past month. Read more here.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

T-bill yield rises to 3.05%. Why the increase?

The cut-off yield for the latest 6-month Singapore T-bill on 2 January bounced slightly to 3.05%.

🤓 What we're looking out for next week

• Thursday, 9 Jan 2025: US Federal Reserve Meeting Minutes
• Friday, 10 Jan 2025: US Employment Data

Check out the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

Source: SGX, Bloomberg, Refinitiv

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