Singapore’s Proposed Mega Projects Could Fuel Decades of Long-Term Investment, Says OCBC

Afdhal Rahman, executive director of wealth advisory at OCBC Bank, said the initiatives could create new avenues for growth across a range of sectors over the next 50 years.

Infrastructure, construction companies and utilities and power providers are among the most direct beneficiaries, while tourism-related plans could support airlines, hotels, entertainment businesses, food and beverage operators and transport companies. Banks and other financial institutions could also benefit as the projects generate stronger demand for corporate and infrastructure financing, Afdhal said.

But investors may need to be patient, as these are proposed long-term projects and any earnings contribution will not be immediate, he added.

One of the most significant proposals is the potential merger of Pulau Semakau, Pulau Bukom and Pulau Sudong with smaller islands into a single larger western island. Semakau is currently home to Singapore’s only landfill, while Bukom houses the country’s first refinery. Sudong, meanwhile, has an airstrip used by the Singapore Armed Forces during emergencies.

The expanded land area is envisioned primarily for industrial and power-related use, creating potential long-term opportunities for companies with established capabilities in infrastructure, utilities and clean energy.

For Singapore’s industrial incumbents, their existing infrastructure and expertise could put them in a strong position should the project move forward. The western island proposal is still at the feasibility-study stage, with no firm timeline or budget committed.

Tourism offers another potentially significant avenue for growth. Plans to link Sentosa and Pulau Brani into a single leisure destination, alongside the development of a new Downtown South resort, enhanced attractions and improved connectivity, are aimed at strengthening Singapore’s position as a global tourism hub.

The initiatives are aligned with the Government’s broader Tourism 2040 ambitions and signal a continued commitment to attracting visitors, encouraging longer stays and increasing tourism spending.

“Over the medium to long term, this could benefit airlines, hospitality operators and hotel-focused Singapore real estate investment trusts through stronger visitor arrivals, longer stays and higher visitor spending,” Afdhal said. A stronger tourism ecosystem could boost not only accommodation providers, but also businesses across the wider visitor economy, including attractions, restaurants, retailers and transport operators.

Afdhal noted that PM Wong’s renewed commitment to supporting productivity improvements and AI adoption through grants and co-funding schemes could provide an additional tailwind for Singapore’s burgeoning tech sector. Companies providing AI-related training programmes and software tools could benefit as more small and medium-sized enterprises accelerate their digitalisation efforts.

The Government’s push to accelerate the deployment of autonomous vehicles could provide another emerging opportunity. Singapore has already been used as a test bed for autonomous vehicle trials, including in Punggol. A faster roll-out could create a more supportive policy environment for companies developing or operating such services.

The National Day Rally announcements underscored the Government’s commitment to strong governance, predictable policymaking, higher productivity, infrastructure development and the pursuit of new growth opportunities, Afdhal added. These factors could go a long way towards reinforcing the Republic’s safe-haven status and supporting investor confidence.

While valuations have become relatively expensive, OCBC Group Research believes Singapore equities will continue to stand out for their defensive characteristics and remain beneficiaries of a stronger Singapore dollar amid ongoing macroeconomic and geopolitical uncertainties.

The Straits Times Index, led by the three local banks DBS, OCBC and UOB, has risen more than 20 per cent since the start of 2026, hovering slightly below 5,700 points as at 28 August. Continued deployment of funds under the Equity Market Development Programme should enhance price discovery and improve market liquidity, Afdhal said.

Meanwhile, a pipeline of initial public offerings, together with the launch of the Global Listing Board by the Singapore Exchange and Nasdaq, could further broaden and deepen the local equity market.