Singaporean financial institutions such as OCBC, DBS, and UOB saw a remarkable surge in their share prices on Wednesday after Malaysia and Singapore signed the Johor-Singapore Special Economic Zone (JS-SEZ) agreement.
OCBC shares surged 4.15%, while DBS rose 2.11% and UOB rose 2.02%.
Experts said Singaporean banks are well-positioned to capitalize on the growing economic momentum in ASEAN, driven by increased foreign investment.
Over the past few years, these banks have been expanding their presence in the region.
The JS-SEZ is expected to boost trade and attract global businesses, which could drive higher demand for credit and banking services.
Furthermore, relocating operational functions to Johor could help these banks reduce overhead costs while improving efficiency.
Shareholders can also benefit from better dividends.
Experts speculate that DBS may introduce a special dividend in 2025, while OCBC and UOB are likely to increase dividends.
Strong financial reserves reinforce these expectations, ensuring sustainable growth and stability.
