The Monetary Authority of Singapore (MAS) is structurally uplifting the local equities market with a S$5 billion programme to shore up liquidity and attract market participants.
Small-cap (market capitalisation of under S$1 billion) and mid-cap (market cap of between S$1 billion and S$5 billion) stocks are poised to benefit.
Here are three quality dividend stocks that stand out as likely beneficiaries.
Sheng Siong Group Ltd (SGX: OV8) – A Defensive Retail Champion
Sheng Siong is the third-largest grocery player in Singapore with a deep presence in the heartlands.
For the nine months ended 30 September 2025 (9M2025), revenue increased 9.5% to S$1.18 billion, with net profit rising 6.5% to S$116.1 million.
The company’s last declared dividend, for the first half of 2025, was S$0.032 per share, which was unchanged year-on-year (YoY).
Sheng Siong’s total dividend of S$0.064 per share for 2024 translated to a sustainable payout ratio of 70%.
With a net cash position of S$393.7 million as of 30 September 2025, Sheng Siong is able to invest in growth opportunities.
This includes the new and larger Sungei Kadut warehouse to replace its near-capacity Mandai Link site.
The Sungei Kadut warehouse is expected to support at least 120 supermarkets and can back the company’s plan to open three new stores annually over the next 10 to 15 years.
The company’s integration of AI across its operations, such as in inventory management, demand forecasting, security and surveillance, is expected to tangibly improve productivity.
Despite risks, such as intense competition in the Chinese market (Sheng Siong also has supermarkets in China) and rising manpower costs, the local resilience in grocery demand and government support measures such as the CDC and SG60 vouchers, has kept growth momentum high.
Sheng Siong’s entrenched brand and stable cash flow make it an identifiable “retail champion” for investors looking for a defensive anchor in their portfolios.
iFAST Corporation Ltd (SGX: AIY) – The Fintech Trailblazer
iFAST has evolved from a simple investment platform into a globally integrated digital banking and fintech player.
In 9M2025, revenue jumped 30.2% to S$363.0 million, with net profit after tax rising 41.8% to S$67.2 million, driven by broad-based growth that includes its core wealth management segment.
Notably, after becoming profitable in the fourth quarter of 2024, iFAST Global Bank looks set to deliver its first full year of profitability in 2025.
Over in Hong Kong, momentum came from iFAST’s ePension division, with its Occupational Retirement Scheme Ordinance (ORSO) business shifting from setup to revenue contribution.
Continued progress in eMPF (Mandatory Provident Fund), should also further boost the ePension division, as onboarding accelerates in the second half of 2025.
iFAST’s dividend for 9M2025 increased 37.3% YoY to S$0.059 per share, with the full-year payout projected to rise by 39% YoY to S$0.082 per share.
Meanwhile, iFAST’s global banking and investment platforms are integrated seamlessly through the iFAST bridge, strengthening its network effect among its financial services through a unified ecosystem.
Overall, iFAST stands out as both a dividend and growth stock, offering investors not just income, but also potential stock price gains.
UMS Integration Ltd (SGX: 558) – AI‑Driven Growth Potential
UMS sits at the heart of the semiconductor supply chain, with chip‑related manufacturing making up most of its business, supported by smaller segments such as aerospace and materials distribution.
UMS’s revenue inched up by 5% YoY to S$184.3 million in 9M2025.
However, operating cash flow was down 44% to S$16.9 million while free cash flow (FCF) slipped into negative territory at negative S$17.4 million mainly because of heavy capital expenditure for the set up of a new Malaysia factory.
Despite the negative FCF, UMS’s dividend for 9M2025 was down only slightly from S$0.032 per share a year ago to S$0.03.
The company also sweetened the deal with a 1-for-4 bonus issue.
UMS’s balance sheet is solid with S$38.2 million in cash and zero debt, which gives the company the flexibility to invest and reward shareholders concurrently.
With “Malaysia and Others” being the only geographic region showing growth in 9M2025, the company’s Malaysia expansion is a key future growth driver.
Together with the rising global demand for AI-driven chips, the AI-driven semiconductor tailwind positions UMS to capture investors’ interest in Singapore’s technology sector.
What This Means for Investors
These three names exhibit strong fundamentals, pay dividends, and have clear growth runways:
- An established grocery brand, Sheng Siong, is a recession-proof, defensive play.
- A high-growth company in the financial sector, iFAST sits favourably in the sweet spot of both growth and income opportunities.
- UMS’s exposure to the demand for AI-driven chips – a major global secular trend – shouldn’t be ignored.
Collectively, they offer diverse exposures in the form of consumer staples, fintech, and advanced manufacturing.
Conclusion – Get Smart: Position Before the Crowd
The Singapore equity market has been moribund for much of the last decade.
MAS’s S$5 billion programme is a timely lifeline to revitalise it structurally.
Smart investors who position early in quality dividend stocks such as Sheng Siong, iFAST, and UMS are likely to benefit immensely as institutional investment starts flowing in.
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Disclosure: Larry L. does not own shares in any of the companies mentioned.
