Why Singaporeans Are Quietly Moving Money Into US Stocks (And Why You Should Pay Attention)

The Shift Nobody Saw Coming

There is a quiet shift happening in Singapore right now.

Not in the coffeeshops. Not in the Grab rides. But in the investment portfolios of regular Singaporeans.

I noticed it first when my colleague Ken — a 32-year-old project manager at an SME — told me he had moved 40% of his savings into US tech stocks. This was three years ago. His parents thought he was gambling.

Today, his portfolio has outperformed his CPF contributions by a significant margin.

The pattern I am seeing is consistent. Singaporeans who never touched a stock in their lives are now opening brokerage accounts. They are buying Nvidia before their morning meeting. They are discussing S&P 500 returns at durian sessions.

What changed?

Why Singaporeans Are Making This Move Now

Several factors converged at once.

First, interest rates in Singapore remained relatively low even as the US Federal Reserve raised rates. This created an unusual situation where Singapore dollar deposits were earning very little while US equities were offering meaningful growth potential.

Second, the rise of fractional shares and low-cost trading platforms made it possible to buy a slice of Apple or Tesla for the same price as a plate of chicken rice.

Third, and perhaps most importantly, a generation of Singaporeans who grew up watching the US stock market from the sidelines finally decided to stop watching.

The CPF Question Nobody Is Asking Properly

Before we go further, let me address the elephant in the room. CPF in Singapore is one of the most robust retirement savings systems in the world. The interest rates alone — especially for the Special Account — beat most savings accounts hands down.

So why are people moving money out of CPF into US stocks?

The answer is not that CPF is bad. The answer is that different people have different time horizons, risk tolerances, and financial goals. Someone who is 25 years old with 40 years until retirement has a fundamentally different equation than someone who is 50.

Ken’s parents were not wrong to distrust stock market volatility. But they also did not account for the fact that a 32-year-old has decades to ride out market cycles.

The Sourcing Rule Advantage

Singapore has no capital gains tax. This is a massive advantage that most Singaporeans do not fully appreciate. When you buy US stocks through a Singapore brokerage, your gains are not taxed by the Inland Revenue Authority of Singapore.

This creates an incredibly favorable environment for long-term investing that most other countries simply do not have.

The combination of no capital gains tax, a strong Singapore dollar, and access to the worlds most innovative companies is a trifecta that smart Singaporeans are beginning to exploit.

What Ken Did Differently

Let me tell you more about Ken because his story is more instructive than any investment seminar I have attended.

Ken started investing in US stocks in 2021 with a simple rule. He would only invest money he was comfortable losing for at least five years. He set up a standing instruction to buy $500 worth of a low-cost S&P 500 ETF every month.

He did not try to pick individual stocks. He did not try to time the market. He just consistently put money to work.

When the market corrected in 2022, Ken did something remarkable. He doubled his monthly contribution. His rationale was simple — prices were lower, so his money would buy more units. His parents called him crazy. His colleagues thought he was reckless.

By 2024, Ken’s US stock portfolio had recovered and was significantly ahead of where it would have been if he had maintained his original contribution level.

The Psychology of Staying the Course

The hardest part of Ken’s journey was not the investing itself. It was the social pressure from people around him who did not understand what he was doing.

Singaporeans are generally risk-averse. This is not a bad thing — it is a cultural trait that has served us well in many ways. But when it comes to long-term wealth building, excessive risk aversion can be just as damaging as reckless risk-taking.

Ken had to develop a thick skin. He stopped talking about his portfolio at family gatherings. He found online communities of like-minded investors. He learned to distinguish between constructive feedback and noise.

The lesson here is not that you should ignore your family is concerns. The lesson is that you need to understand your own financial situation well enough to make informed decisions regardless of what others think.

The Numbers That Explain Everything

Let me give you some real numbers to work with.

If you had invested $10,000 in the S&P 500 index in January 2010, that investment would have grown to approximately $38,000 by January 2024. That is a return of nearly 280% over 14 years.

Compare that to keeping the same $10,000 in a Singapore savings account at an average interest rate of 0.5% per annum. After 14 years, you would have approximately $10,720.

The difference is stark and it illustrates the power of compound growth in equities versus the erosion caused by inflation in cash deposits.

Understanding Volatility

I know what you are thinking. The stock market went down in 2022. Ken lost money too.

Yes, Ken’s portfolio did decline in value during the 2022 correction. At its lowest point, his portfolio was down approximately 20% from its peak.

But here is the critical difference between Ken and most retail investors. Ken did not sell. He understood that paper losses are only real losses if you crystallize them by selling. He stayed invested and waited for the recovery.

By staying the course, Ken participated in the subsequent recovery and ultimately came out ahead of where he started.

How to Start Moving Money Into US Stocks

If this article has resonated with you and you are considering following in Ken’s footsteps, here is a practical framework to get started.

Step 1: Assess Your Financial Foundation

Before you invest a single dollar in US stocks, make sure you have the basics covered. This means having an emergency fund of at least three to six months of expenses in a liquid savings account. It means paying off any high-interest debt such as credit card balances. It means having adequate insurance coverage.

Only after these foundations are in place should you consider investing in equities.

Step 2: Choose the Right Brokerage Platform

Singapore offers several brokerage platforms that give you access to US stock markets. Look for platforms that offer low or no minimum deposits, competitive exchange rates, and reasonable commission fees. The difference between a platform charging 0.1% foreign exchange fee versus 0.5% may seem small but it compounds significantly over time.

Step 3: Start With an Index Fund

My recommendation for most people is to start with a low-cost S&P 500 index fund. This gives you instant diversification across 500 of the largest US companies. You can then gradually add individual stocks as you become more comfortable with the mechanics of stock investing.

Step 4: Automate Your Contributions

The most powerful tool in your arsenal is consistency. Set up a standing instruction to invest a fixed amount every month regardless of what the market is doing. This approach, known as dollar-cost averaging, removes emotion from the equation and ensures you keep building your portfolio systematically.

What This Means for You

The shift is already happening. Your neighbors, your colleagues, perhaps even your own family members are already moving money into US stocks. Some of them are doing it well. Some of them are taking on more risk than they realize.

The goal of this article is not to tell you that CPF is wrong or that you should abandon your retirement savings for speculative stock picking. The goal is to help you understand that there is a conversation happening around you about portfolio diversification and that it deserves your attention.

Ken’s story is not unique. There are thousands of Singaporeans who have quietly built meaningful wealth through US equity investments over the past decade. Some of them started with less than what you have today.

The question is not whether this shift is real. The question is whether you will pay attention in time.

Take stock of your financial situation. Understand your goals. And most importantly, start before you feel ready. The best time to start investing was five years ago. The second best time is now.

SeaMoney Team