Singapore Reopening Beneficiaries

Narrowing our focus

• Feb 13 marks the end of pandemic restrictions – removal of mandatory mask-wearing, shift to Dorscon Green, cessation of the multi-ministry task force – highlights the receding threat of COVID-19 in Singapore.

• While the news is unlikely a gamechanger for tourist arrivals and retail sales, it nevertheless completes Singapore’s transition to normalcy.

º Passenger traffic at Changi Airport has recovered to 80% of pre-COVID.

º Further recovery should take hold with the return of HK/CN tourists -> They made up c.21% of visitor arrivals in 2019.

at changiSIA had S$17.5 billion cash versus S$15.8 billion total debt as of end-Sept 2022.

Transition to Dorscon Green comes a day before Budget 2023 (on 14th Feb).

º COVID relief measures for businesses may not be extended, focus may turn to stimulating post-COVID economic activity and/or tackling inflation.

We continue to be positive on reopening beneficiaries but narrow our focus on those in net cash position given the increased odds for FED funds rates to peak a notch above 5% and remain around 5% through 2023.

º Aviation-related: SIA, SIA Engineering
º Tourism-related: Genting Singapore, Raffles Medical
º Public transport: ComfortDelGro

taxis CDG4.22As at end-Sept 2022, ComfortDelGro had net cash of S$647 million.

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