Hanoi (VNA) – Singapore has surpassed Indonesia to become Southeast Asia’s largest stock market by market capitalisation as investors increasingly seek safe-haven assets amid mounting concerns over Indonesia’s economic outlook and market stability.
According to data compiled by Bloomberg, the total market capitalisation of companies listed in Singapore has reached 645 billion USD, while Indonesia’s stock market value has fallen more than 30% from its January 2026 peak to around 618 billion USD.
Singapore’s stock market has benefited from strong political and economic stability, along with a series of government-led reforms aimed at revitalising the financial market. This week, the Straits Times Index hit a record high as investors turned to defensive assets amid volatility triggered by the conflict in Iran.
Carmen Lee, head of equity research at Oversea-Chinese Banking Corp (OCBC), said rising wealth and the strength of the Singapore dollar are expected to attract more capital inflows into the market.
Meanwhile, Indonesia has faced growing pressure from persistent sell-offs and concerns over a possible downgrade by MSCI Inc. from emerging-market to frontier-market status. Investor sentiment further deteriorated after Fitch Ratings and Moody's Ratings revised the country’s credit outlook to “negative”.
Indonesia’s benchmark stock index currently ranks among the world’s weakest performers while the rupiah has continued to slide to record lows.
Nearly 360 billion USD has been wiped off Indonesia’s stock market since the beginning of this year, creating major challenges for President Prabowo Subianto as his administration seeks to restore investor confidence and achieve ambitious growth targets.
Global investors have withdrawn more than 4 billion USD from Southeast Asian emerging equity markets so far this year, with Indonesia accounting for more than half of the outflows./.
