'Iron Rice Bowl' Stocks: Can These 4 Singapore Stocks Shield You from Tariff Policy Volatility?

$Straits Times Index(STI.SI)$   rocketed 5% on April 10, fueled by President Trump’s 2 am Singapore-time announcement of a 90-day tariff pause, a reprieve excluding China. This surge clawed back nearly a third of the STI’s 15% collapse from its March 28 record high above 4,000 points. 

Banking heavyweight $DBS Group Holdings(D05.SI)$   spearheaded the rebound, soaring to 11% to reclaim the S$40 level, while industrial laggard $YZJ Shipbldg SGD(BS6.SI)$   surged 10% in early trading today. Yet the relief proved fleeting: By 14:19, the index had retreated to 3,563.7—still over 10% below its pre-crisis peak and squarely in correction territory.

STI's Fleeting Rally vs. Defensive Realities

Prime Minister Lawrence Wong's April 8 warning—downgrading 2025 GDP growth forecasts to 0.5-2.5% and flagging recession risks—casts a pall over the rally's sustainability. History offers little comfort: During the 2018-2019 U.S.- China trade war, the STI's average 5.2% tariff-related rallies lasted merely 6.3 trading days before reversing.

Yet, defensive strategies retain urgency. The four high-yield stocks analyzed below—all domestically anchored, policy-shielded, and necessity-driven—delivered an average 6.3% dividend yield during the STI's recent 15% rout, outpacing Singapore's 10-year bond by 403 basis points. 

This aligns with a persistent market truth: Consumer staples and utilities outperformed the broader index by 18 percentage points during 2020’s pandemic whipsaw. For risk-averse investors, the calculus remains clear—prioritize companies blending recession-proof demand, state-backed subsidies, and cash flows insulated from global shocks.

1. SBS Transit Ltd (SGX: S61): 8% Yield Anchored by 3.5 Million Daily Commuters

With COE prices at a record S$150,000, $SBS Transit (S61.SG)$'s 3,572 buses and 78 MRT stations remain irreplaceable. The firm's 2H24 net profit increased 6.8% year-over-year, despite the STI's decline. Its 8% dividend yield (1H25) is buoyed by cost controls and ridership growth (2.5% projected for 2025).

Government Lifeline: Budget 2025's S$1.4 billion public transport subsidy ensures fare affordability, shielding SBS from demand erosion.

2. Sheng Siong Group Ltd (SGX: OV8): Grocery Spending Gets a S$500 Million Stimulus Boost

Singapore’s third-largest supermarket chain, with 77 stores, thrives on inertia: 84% of households shopped at $Sheng Siong(OV8.SI)$   in 2024. While inflation squeezed margins, government CDC vouchers—renewed at S$500 million in 2025—propelled foot traffic. The stock's 3.5% forward dividend yield aligns with its 5-year average, while private-label sales (22% of revenue) cushion input costs.

3. NetLink NBN Trust (SGX: CJLU): 6% Yield for Singapore’s Digital “Water Utility”

As remote work becomes non-negotiable, $NETLINK NBN TRUST (NETLF.US)$’s fiber-optic network—used by 99% of broadband users—is untouchable. Revenue grew 4% in 2024, tracking Singapore’s digital economy expansion. Its 5.7% dividend yield is backed by fixed fees (85% of revenue), immune to discretionary cuts.

State-Backed Defense: A S$1.2 billion 5G rollout fund (2025–2027) ensures long-term contracts, insulating NetLink from tariff chaos.

4. Kimly Limited (SGX: 1D0): Hawker Culture’s 7% Yield Defies Inflation

Hawker foot traffic surged 8% in 2024 as diners traded down. $Kimly (1D0.SG)$, operating 78 coffee shops, delivered a 6.95% dividend yield in 2024 via central kitchen efficiencies and HDB-centric locations (70% of stalls).

Budget 2025 Backstop: S$200 million in F&B grants, part of the task force’s SME support, helps offset ingredient inflation (up 12% YoY).

Why These Stocks? Necessity + Policy = Downside Armor

The government's anti-recession toolkit—from CDC vouchers to transport subsidies—directly subsidizes these firms’ customer bases. Meanwhile, their sectors align with DPM Gan’s task force priorities:

1. Domestic Demand Focus: All 4 derive over 80% of revenue locally, avoiding Trump's tariff crossfire.

2. Yield Safety Net: Their average 6.3% yield dwarfs Singapore's 10-year bond (2.1%) and STI average (3.1%).

3. Policy Immunity: Necessity sectors are first in line for stimulus, as seen in 2020’s S$93 billion pandemic package.

Risks: Even "Safe" Stocks Aren't Tariff-Proof

While these firms face minimal direct U.S. exposure, Singapore's open economy can't fully escape second-order effects:

– Supply Chain Costs: Imported inflation for parts (e.g., SBS's buses) or ingredients (Kimly's seafood) could squeeze margins.

– STI Correlation: The index's 15% drop since March drags all boats—even defensive names—amid panic selling.

Yet history favors resilience: During the 2020 pandemic, Singapore's consumer staples and healthcare stocks outperformed the STI by 18 percentage points. As PM Wong warns of a “bumpier ride ahead," these picks offer retail investors a rare trifecta: yield, policy tailwinds, and sleep-at-night stability.

Task Force Tailwind: The government's business resilience grants, part of DPM Gan's toolkit, could offset supply chain disruptions from U.S. tariffs.

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