The Prospect of Singapore For The Next 50 Years

Investors are worried about the slowdown in China and the negative effects that quantitative easing might have on the global economy. I was never that smart to fully understand how world’s events might affect the overall investment outlook. However, what I am fairly sure about is how I see Singapore for the next 50 years, and how I should position my investment for that future.

Singapore could not grow in size

Even if Singapore reclaims and consolidate all its surrounding islands into one island, it will still be a tiny red dot on a world map. This means that land is scarce in Singapore. And with a population target of 6.9 million by 2030, space will be a commodity in demand. This means that properties in Singapore, especially residential and commercial spaces would continue to be sought after over the next five decades.

That could mean that many of the REITs in Singapore such as Frasers Centrepoint Trust (SGX: J69U) and Capitaland Commercial Trust (SGX: C61U), which own some of the most valuable assets in Singapore could benefit. In fact, in the absence of extreme events, these assets would most likely be even more valuable in the future.

Tourism in Singapore

According to the Singapore Tourism Board, Singapore attracted more than 15 million visitors in 2014, which is close to three times its entire population. More importantly, the tourists collectively spent about S$23.5 billion during their stay. Being dubbed the “Garden City”, tourism to Singapore would most likely continue to thrive over the next few decades. Tourism related businesses such as Genting Singapore PLC (SGX: G13) might continue to do well in the future, if the attractions are managed well.

Foolish Summary

Sure, we might never know how the superpowers of the world will shape the global economy, and Singapore, as a small nation, would certainly be affected by these policies. Yet, there are some things in Singapore that would still most likely hold true no matter what the future is. As investors, these are areas we can start exploring.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn't own shares in any company mentioned.