[SINGAPORE] Investors should pivot towards companies with strong pricing power and direct policy linkage as Singapore navigates an energy-driven “cash-flow cushion”, RHB said in a strategy report on Wednesday (Apr 8).

On Tuesday, Singapore announced a S$1 billion support package in response to the Middle East energy shock.

“The policy architecture is not a demand stimulus but instead a targeted cash-flow cushion designed to preserve household purchasing power for essentials,” RHB stated.

Identifying the beneficiaries and laggards, RHB analyst Shekhar Jaiswal said: “The clear winners are heartland consumption, suburban retail real estate investment trusts and domestic land transport, while aviation faces headwinds and cost pressure.”

Heartland retail and staples in the lead

The brokerage identified Sheng Siong , Frasers Centrepoint Trust (FCT) and CapitaLand Integrated Commercial Trust (CICT) as clear winners of the package.

“The most direct equity beneficiaries of the government package are concentrated in consumer staples and suburban heartland retail,” Jaiswal said.

“Supermarket operators and suburban mall landlords with necessity-led tenant mixes are first-order beneficiaries, while more discretionary or tourism-dependent retail formats will see limited benefit,” he added.

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