Singapore is a small, densely populated country with an economy dominated by its key financial and service sector industries. As a result, most people can only get their hands on a piece of the island state’s $1.9 trillion total GDP pie through private investment. That being said, there are ways to invest in Singapore that aren’t necessarily accessible outside of the island state’s borders.

As such, becoming an investor in Singapore is something that even complete beginners can do — provided they have the right tools and resources. In this article, you’ll learn about the various types of Singaporean investments and how to acquire them, as well as some important considerations before deciding to take on any particular type of investment.

What is Investing in Singapore?

Investing in Singapore is like any other type of investment. You’ll need to come from a financial or investment background to make a consistent go at investing here. If you’re not in the know about how to make money from investments, begin your journey in the United States. There are many companies that have established their footprint in the country over the past two decades, and many of them have become household names thanks to their investments. Investors can start company in singapore with a number of industries, including finance, media, healthcare, and social-media sectors. In addition, there are a number of funds and funds of funds (FMOs) that have been established over the past few years that principally focus on the health of these industries.

How to Invest in Singapore: An overview

You can begin your investing journey in the following ways. The first is by purchasing a physical copy of Singapore’s currency, the Singapore Dollar. This is known as a “mark paper” investment and is another way to get your foot in the door of investing in Singapore. Another way to get your foot in the door is to invest in a fund or fund of funds.

A fund of funds is a mix of different investments that you purchase and manage yourself. These are often managed by investment funds. A fund of funds is great for people who want to get their foot in the door of investing in Singapore, but don’t have the required knowledge or capital to manage on their own. Lastly, you can invest in a Singapore-based company directly. This is always a great option for people who want to invest in Singapore, but don’t have the time or knowledge to manage their own investments.

Real Estate Investment Trusts (REITs)

Another type of Singapore-based investment that’s meant to get you in the door is in a mutual fund called a REIT (real estate investment trust). These are a type of real estate investment trust that owns the land, buildings, and building assets. The assets are managed by a management company that owns shares in the REIT. 

The management company is then required to maintain a certain minimum amount of shares in the REIT at all times for a period of time. This minimum requirement is known as the “trust” or “hedging” component of the REIT. However, you can also directly buy condominiums from companies like Seneca Residence and Lentor Modern.

Mark Paper Investment

A mark paper investment is an investment that involves purchasing physical currency. Typically, this will involve buying Singapore Dollars and then storing it in a safe location. This is known as “marking” your paper (paper refers to the physical currency). The idea behind marking your paper is that you are hoping that the value of your investment will increase over time. The value of your investment will be determined by how much you paid for it and what its current market value is at the end of each day.

Funds and Fund of Funds (FMOs)

The second way that an investor can invest in Singapore is through funds and fund of funds (FMOs). These are investments that are managed by professional managers and typically involve some sort of transaction fee or expense ratio (ER) associated with them.

A fund manager will manage your money for you, which relieves you from having to do so on your own. This makes managing your account much easier for investors who might not have as much experience as others when it comes to investing their own money into different types of assets, such as stocks or bonds example.

Exchange Traded Funds (ETFs)

In general, you’ll want to invest in ETFs. These are a type of investments that are specific to companies and industries in Singapore. For example, your index fund might include stocks in Singapore’s eCommerce industry. Your value fund might include stocks in the Singapore Food & Drink industry. Similarly, your low-volatility fund might include stocks in the Singapore financial services industry.

Debt Securities

If you’re looking to get into debt investing, you should probably start with assets like real estate and financial assets, like government-issued bonds. These have a higher interest rate, but are typically more liquid, meaning they’re more likely to appreciate in value. You can also invest in various types of debt like corporate bonds, notes, and bonds issued by the public or private sectors.

How to Buy Stocks in Singapore?

There are a few ways to get your foot in the door of investing in Singapore. The first is by purchasing a piece of land. This can either be a single piece of land, or a piece of real estate. If you’re interested in buying a single piece of land or a building, you can usually do so through an online auction. Another option is to meet with a real estate broker at a local real estate show. If you want to buy a building, you can usually do so at a construction site. Finally, you can also do business with Hong Kong’s once-in-a-lifetime stock exchange, which is the primary means of trading in and out of businesses in the country.

Summary

Investing in Singapore can be a good option for new and total beginners alike. The country is small, and the number of available investments is limited. Additionally, most people can only get their hands on a piece of the largest GDP in the world through private investment. All in all, investing in Singapore is like any other type of investment, and you can make money from it.