The SRS Fund Jan 2026

A Strong Start

After a blockbuster 2025 that saw GDP growth hit a surprise 4.8%, the first month of 2026 has proven that the momentum is far from a fluke. Between record-breaking stock market performance and massive industrial investments, the “Little Red Dot” is making a very big noise.

The Straits Times Index (STI) started the year with a bang, shattering glass ceilings to hit an all-time high of 4,923 points on January 27. Driven by powerhouse performances from local banks and property giants like UOL, the index has become a beacon for investors seeking “safe haven” assets amidst global volatility. With JPMorgan already lifting its 2026 target to 6,000, the sentiment on the ground is clear: Singapore is the place to be.

The AI Spillover

The global AI boom has officially landed on our shores. The electronics sector received a massive shot in the arm as Micron Technology broke ground on its new US$7 billion (S$9.5 billion) High-Bandwidth Memory (HBM) facility.

Jobs & Growth: The facility is expected to create up to 3,000 high-tech jobs, cementing Singapore’s role as a critical node in the global AI supply chain.

Construction: Building the Future at Full Steam

The Building and Construction Authority (BCA) expects up to S$53 billion in contracts this year.

IR Expansion: Both Marina Bay Sands and Resorts World Sentosa are in “full steam” mode with their massive expansion projects, fueling tourism and local construction demand alike.

Changi Terminal 5: Work is progressing rapidly, ensuring Singapore remains the premier global aviation hub.

SRS Fund Grew Strongly

The SRS Fund grew 5.3% in just the first month of the year hitting a high of $640k with contributions from a wide variety of sectors

More shares of AEM Holdings were added into the SRS Fund as we move into the AI infrastructure era. More than $500b of investment were announced by the hyperscalers. AEM being a downstream player will stand to benefit through their involvement with both Intel and Micron.

Portfolio Segments

The composition of the SRS Fund is now diversified and despite having DBS as the overwhelming anochor the finance segment constitutes only 33.8% compared to the over 50% for the benchmark STI.

Dividends

With no dividends received in January, all eyes are now on the upcoming earnings reports. Continued strength in the Singapore market should pave the way for record-level payouts later this year.

SRS Fund Value

With such a strong start to the year, it is encouraging that the SRS Fund will again compound and hit the $700k mark if all goes well for the year.

Cash Levels

Final Thoughts

While past performance should never be extrapolated blindly, the 2025 rally in the STI appears to be underpinned by genuine structural and macroeconomic drivers rather than short term speculation. If these forces persist, Singapore equities may finally be entering a period of renewed relevance after years of relative underperformance.

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