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National Day 2019 Message: These Singapore-Listed Shares Could Benefit

In his National Day Message, Prime Minister Lee Hsien Loong spoke of the recently-completed JEWEL at Changi Airport as one of the projects involved in remaking Singapore. He also mentioned five other projects in the coming years that will redefine Singapore’s landscape and open up more land for residential, tourism and industrial use.

Investors should sit up and take note of these five projects as they span multiple years and will drastically change the physical landscape. Some projects will bring in a higher level of tourists while others are slated to open up more land area for new residential and commercial developments.

Here is a summary of the five projects and the companies that could benefit from them.

1. Changi Airport Terminal 5

Plans are being made to construct Terminal 5 for Changi Airport, and it will be built on 1,000 hectares of land and be able to increase the annual capacity for the airport by between 50 to 70 million visitors per year to potentially serve 150 million visitors. This project is expected to be completed by 2030 and will cost billions of dollars.

Companies that should benefit include SATS Ltd (SGX: S58), which runs food catering and ground handling services for airlines. A higher number of visitors will boost its volumes in the long-term. Straco Corporation Limited (SGX: S85), an operator of tourism assets, also stands to benefit as it owns 90% of the iconic Singapore Flyer.

2. Tuas mega port

Singapore’s maritime sector is set to receive a boost when Tuas mega port starts opening in phases from 2021, as it is twice the size of Ang Mo Kio Town. The new port will have the capacity to hold 65 million twenty-foot equivalents (TEU) of cargo, more than the current 50 million which the Port of Singapore can handle. LHN Ltd (SGX: 41O), which has a container handling division, could benefit from this increased capacity.

3. Jurong Lake District

There are ambitious plans to develop the Jurong Lake District area into an integrated tourism development with attractions, hotels and other lifestyle offerings. This will happen by 2026, and by 2040, the entire district will see 20,000 new homes and create 100,000 new jobs.

Companies that stand to benefit include real estate developers CapitaLand Limited (SGX: C31) and City Developments Limited (SGX: C09), Straco Corporation Limited (SGX: S85) and NetLink NBN Trust (SGX: CJLU). NetLink will have the opportunity to increase its number of residential and non-residential connections in the future, earning more revenue from each additional new connection.

4. Shifting of Paya Lebar airbase

When Paya Lebar airbase gets relocated to the expanded Tengah airbase, it will free up the land for more homes, offices, factories and parks.

Companies that could benefit from this include CapitaLand and City Developments, construction companies such as Yongnam Holdings Limited (SGX: AXB) and BBR Holdings Ltd (SGX: KJ5), heavy equipment owner and operator Tiong Woon Corporation Holdings Ltd (SGX: BQM) and also ISOTeam Ltd (SGX: 5WF), which takes on public housing contracts for cleaning, maintenance, additions and alterations. Boustead Projects Limited (SGX: AVM) may also be a beneficiary if it can clinch contracts to design and build industrial properties in the newly-vacated plot of land.

5. Greater Southern Waterfront

The Greater Southern Waterfront makes up the space vacated by the port at Tanjong Pagar, and though the projected start date is 2030, authorities have already made plans to integrate Sentosa island with the southern waterfront and to develop the island of Pulau Brani. These developments will result in new homes being built, and also attract many more tourists to this area, benefitting the real estate developers mentioned above as well as Straco Corporation. The new venture could also see higher visitors to VivoCity, which is owned by Mapletree Commercial Trust (SGX: N2IU).

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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommended shares of SATS Ltd, Straco Corporation Limited, Boustead Projects Limited, CapitaLand Limited, City Developments Limited and Mapletree Commercial Trust. Motley Fool Singapore contributor Royston Yang owns shares in SATS Ltd, Straco Corporation Limited, Boustead Projects Limited and NetLink NBN Trust.