HIGH SPEED RAILWAY SCRAPPED: WHAT IT MEANS FOR SINGAPORE STOCKS?

High Speed Railway Singapore Malaysia
Dear readers, on Monday evening (28 May 2018), after Singapore stocks markets closed, Malaysia announced that it would be scrapping the joint High Speed Railway project with Singapore. With this announcement, what would it means to Singapore stocks when the stocks markets open here later?
Well, I would think that investors are likely to focus this High Speed Railway development on selective Singapore stocks; stocks which have been tossed in the past to benefit from this project. Some names of stocks which could benefit from the High Speed Railway that I have read in the internet before include engineering firms like United Engineers and ST Engineering (which could possibly take part in this project), hence would we see some selling in these stocks if investors and traders are to focus the news of the High Speed Railway on these and other engineering and construction firms which may gain the joint Railway project?

My personal opinion is that the High Speed Railway project once completed will bring more Malaysia tourists and visitors to Singapore, be it on just a weekends getaways and since Jurong is Singapore’s node for the High Speed Railway project, it is just as likely that a majority of these tourists and visitors will choose to stay in the Genting Singapore hotel in Jurong, close to the transport node. Such increased visitors and tourists numbers from the north will be (but now it is “would have been”) beneficial for Genting Singapore in terms of increased hotel occupancies and increased synergies with their Sentosa attraction businesses. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.


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