Emerging Markets Fixed Income
The conflict in the Middle East has caused major disruptions in global oil markets, effectively closing the Strait of Hormuz for the first time in recent history. With the wide range of potential outcomes, volatility and risk-off sentiment are set to persist.
We reiterate that energy price normalisation hinges on the reopening of the Strait of Hormuz and resumption of oil and gas production cuts, which may take time for the damaged infrastructure to come back online.
Trump commented on 31 March that he envisions withdrawal from Iran within the next two to three weeks, which may reduce the tail risk of an extended war but has not completely alleviated the risk of an escalation as it remains unclear what may happen over the next few weeks. In addition, leaving the status of the Straits of Hormuz unresolved risks continued volatility.
Credit markets have been relatively resilient. Compared to previous episodes of oil supply shocks, spread widening remains contained. However, without a lasting resolution plan as agreed by all parties, we do not rule out further spread decompression and expect greater credit differentiation.
Prolonged energy shocks could increase inflation, trigger broader risk-off sentiment, and impact economic growth. Therefore, prudent credit selection and active duration management are essential to navigate these risks.
Portfolio implications
We expect USTs to stay volatile amidst shifting inflation, labour, and fiscal signals. Sustained high energy prices are likely to increase stagflation risk, prompting central banks to hold off on monetary easing for now. Some may even hike rates to curb inflationary pressures. Tighter monetary conditions could raise funding costs for corporates.
When inflation concerns surpass growth worries, long-duration assets tend to underperform, making short-duration positions safer during early oil shocks. However, prolonged energy disruptions could shift the balance of risks, potentially leading the Fed to ease policy at a later stage if unemployment rises and growth slows. Therefore, we keep a Neutral duration stance at the portfolio level.
In terms of sector positioning, we observe that in general defensive sectors such as telecom and consumer staples as well as energy geared sectors such as upstream O&G, commodity players, energy exporters are likely to benefit.
In contrast, energy importers, downstream refiners, petrochemicals as well as cyclical sectors – such as ports, real estate, shipping, airlines, autos and consumer discretionary – are more likely to be negatively impacted.
As for utilities, the impact largely depends on how quickly higher fuel costs can be passed on to consumers. In some countries, particularly EMs, price controls may be in place to mitigate the inflationary effects on the broader economy.
Even among those who benefit, gains are unlikely to be uniform. For instance, in the upstream segment, factors such as whether sales volumes are priced at fixed rates or spot prices, the location of assets, and the extent of oil production hedging will influence how much advantage a producer actually realises. For government-owned integrated oil issuers, social mandates and government policy considerations could limit the cash-flow benefit to export volumes in the short-term.
As for bond prices, market technicals, risk sentiment, and interest rate fluctuations will all impact the total returns for investors. The recent positive correlation between oil prices and rate volatility is expected to further complicate credit markets, leading to higher risk premiums and increased spread volatility
While we maintain a Neutral position on Asia and an Underweight on CEEMEA, from a fundamental perspective Latam should be relatively better positioned, with selected countries and sectors in the regions potentially benefiting from higher oil prices. However, its current relative resilience could be weakened under a broader risk-off scenario. A shift of focus from inflation to growth concerns could also reverse some of the positive returns in O&G sector at a later stage. As such, we revise our view on Latam from Overweight to Neutral.
Emerging Market Bond Performance
On a year-to-date (YTD) basis as of 31 March 2026, except for EM High Yield (HY) Corporates, total returns for most segments of the credit markets were negative, mainly driven by higher rates. Duration has been a key factor, with longer-duration segments underperforming YTD. There was spread decompression but to varying degrees and remained largely contained at the index level.
Within EM, we are seeing rising dispersion, with weaker credit quality and affected sectors and regions experiencing larger spread widening.
For EM Corporates, index level spreads have widened 18bps YTD to 206bps as of 31 March 2026. But we saw a fair bit of regional differentiation as Latam (+3bps to 271bps) and Africa (+1bps to 214bps) benefited due to their higher commodity exposures, while EM Europe (+51bps to 342bps) and Middle East (+42bps to 172bps) underperformed. Asia has widened but to a smaller extent (+16bps to 143bps).
As for EM sovereigns, index spread level widened 35bps YTD to 289bps as of 31 March 2026. All regions saw widening (Asia: +31bps to 103bps; Middle East: +71bps to 336bps; Africa: +80bps to 405bps; Europe: +62bps to 272bps) except for Latam which was flat YTD. Higher beta HY sovereigns which are net oil importers such as Egypt, Bahrain, Sri Lanka, Pakistan, and Ukraine underperformed on a relative basis.
In terms of sector performance, we are starting to see more differentiation within EM Corporates. Cyclical industries more exposed to recession risk and rising costs such as real estate and transport have underperformed, while O&G has outperformed driven by higher oil prices.
Interestingly, there is also a distinction in performance between IG and HY O&G. Notably, the IG O&G segment has underperformed primarily due to a meaningful weight of Middle East and longer duration of the segment. In contrast, the HY O&G segment (mostly consists of issuers in Latam and in Africa) performed better.
Asia
Sovereigns: Uneven impact across the region
As a net importer of energy and a significant portion of its O&G imports coming through the Strait of Hormuz, Asia as a region is vulnerable to a large adverse supply shock and will be negatively impacted through a variety of channels, such as: a) higher inflation; b) wider O&G trade deficits of economies highly dependent on imported energy (e.g. Japan, South Korea, Thailand, India, Taiwan and the Philippines); c) higher fiscal burden due to government fuel subsidies (e.g. Indonesia, Malaysia and Thailand); d) currency depreciation; and e) weaker private consumption.
However, the precise net impact is likely to be uneven across the region. The primary distinction will be between countries that have larger energy buffers to avoid industrial shutdowns and constrain economic activities vs those that are less insulated. Sri Lanka, Pakistan, India, the Philippines, Thailand, and Vietnam are likely to be more vulnerable to higher global energy prices while the fiscal balances in Indonesia and Malaysia could see some deterioration.
We expect selected Asian governments to use fiscal buffers and off-budget support to cushion the oil shock to growth where possible. Given the heightened uncertainty, Asian central banks are likely to stay cautious first, but we do not rule out rate hikes under a prolonged energy disruption scenario.
Corporates and Banks: Impact largely from second-order effects
Several Asian corporates have direct exposures to Middle East, but the overall credit impact should be manageable. Having said that, corporates are likely to feel the second order impact of fuel shortages through higher input costs and deteriorating risk sentiment. The indirect impact is unlikely to be uniform and depends on how quickly the higher cost can be passed through or the industry it is in.
For Asian banks, most remain predominantly focused on regional markets with limited loan exposure in the Middle East and maintain well-diversified loan portfolios across retail and corporate loans. However, prolonged high energy costs are likely to feed into inflation, weaken consumer sentiment, and weigh on economic activity and will have negative implications for the broader macro economy.
We expect near-term volatility if the heightened tensions lead to broader risk-off in financial markets. Issuers with weaker fundamentals, heavier reliance on external financing as well as sectors more vulnerable to high energy prices. are likely to see larger spread widening on sustained and prolonged high oil prices.
Having said that, compared to its EM peers, Asian bonds should be relatively more resilient in a broader risk-off scenario, given its comparatively higher credit quality composition, lower market beta and stronger market technicals. These could some downside support to bond prices.
CEEMEA
Higher oil prices would normally deliver a clear and broad‑based improvement in sovereign credit across the GCC and parts of CEEMEA. Historically, elevated prices strengthen fiscal balances, boost external buffers and ease financing pressures for oil exporters, while tightening conditions for importers. That basic dynamic still holds, but in the current environment where the Strait of Hormuz is closed, material offsets prevent higher prices from being an unambiguous positive.
For the GCC, the starting position is strong. Most sovereign issuers – barring Bahrain and Emirate of Sharjah – enter this period with sizeable fiscal buffers, low debt burdens and robust external balances. Under normal circumstances, higher oil prices would reinforce fiscal surpluses, support sovereign wealth fund inflows and underpin public investment. Saudi Arabia, the UAE and Oman are best positioned to capture these benefits, supported by diversified export routes, including Saudi Arabia’s East–West pipeline with 5–7mn b/d of bypass capacity and the UAE’s 1.8mn b/d Habshan‑Fujairah pipeline, while Oman exports directly via Duqm and Sohar on the Arabian Sea.
However, the potential for export disruption – particularly under a prolonged closure of the Strait of Hormuz – tempers the upside. The key issue is not the oil price itself, but the ability to realise revenues. For Kuwait, Bahrain and especially Qatar, the coincidence of higher prices with constrained export volumes reduces the net benefit. Qatar is particularly exposed given the centrality of LNG to its fiscal and external accounts and the declaration of force majeure after roughly 17% of Qatar Energy’s capacity was impaired following an Iranian strike on Ras Laffan.
Beyond the Gulf, higher oil prices are broadly negative for CEEMEA importers such as Egypt, Jordan, Turkey and Morocco, exacerbating import bills, subsidy pressures, inflation and FX risks. African frontier markets face sharper stress due to refined fuel dependence, while even exporters like Nigeria and Angola see limited upside due to structural constraints.
Overall, higher oil prices remain supportive, but the net impact is increasingly conditional, producing a more dispersed and nuanced sovereign credit landscape than in past cycles.
Corporates: GCC credits more exposed
Within CEEMEA, GCC corporate credits have come under closer scrutiny due to their exposure to the recent events related to the US–Iran conflict. Downstream companies, such as refiners in Eastern Europe, are not necessarily positioned favourably in the current cycle. Higher crude and energy prices can temporarily compress refining margins unless refiners are able to pass through increased input costs or end‑markets can absorb higher prices.
Companies better positioned in the current environment are small, independent exploration and production (E&P) firms, predominantly in Africa, whose revenues are more directly linked to oil prices. A persistent challenge for these producers, however, is scale. Many operate as bidders on mature fields or as developers of single‑asset, “one‑hit” projects, which keeps them in a constant search for new reserves. The current backdrop not only supports stronger free cash‑flow generation but also enables these companies to pursue assets that, under normal conditions, might be considered too risky.
GCC Banks: Elevated prices favourable but disruption risks are rising
GCC banks would normally benefit from a period of elevated oil prices. Historically, higher hydrocarbon revenues strengthen sovereign balance sheets, increase public‑sector deposits, improve system liquidity and support credit growth. Entering the current period, GCC banking systems are in a position of strength: capitalisation is high, profitability remains robust and liquidity buffers are among the strongest across EM.
However, the present environment is more complex than past oil price upcycles. While higher oil prices remain supportive, the risk of export disruption and interruptions to trade and business flows – particularly in the event of a prolonged closure of the Strait of Hormuz –introduces meaningful offsets. As a result, the impact on banks is increasingly differentiated rather than uniformly positive.
In the near term, banks in jurisdictions with greater export resilience are better positioned to capture the upside. Strong fiscal revenues support sovereign and Government-Related Entity (GRE) deposit inflows, while ongoing public‑sector investment underpins loan demand. Deep domestic liquidity and diversified funding bases further help these systems absorb global volatility.
By contrast, in more exposed systems, higher oil prices may be partially offset by volume constraints, weaker non‑oil activity and logistical disruption. Despite strong capitalisation, reliance on non‑resident funding and tight sovereign linkages mean prolonged export disruption could tighten liquidity and raise funding costs even in a high‑price environment.
The key risks are cyclical and operational rather than solvency‑related. Trade finance is the most immediate transmission channel, while stress could emerge in aviation, tourism, property, logistics and industrial sectors. Higher‑for‑longer global rates, transmitted via dollar pegs, also keep funding costs elevated. Overall, higher oil prices remain supportive, but dispersion across GCC banking systems is likely to widen if oil and gas delivery disruptions to market persist.\
Latam
Inhomogeneous impact across the region
The impact of rising oil prices Latam will not be homogeneous. The region is a commodity powerhouse; however, exposure to natural resources differs not only in terms of availability but also in the institutional and operational structures used to exploit them.
Latam is not very different from other EM regions, where most of the major commodity producers are sovereign‑owned enterprises (SOE). These SOEs typically carry social mandates, most notably the obligation to smooth price adjustments that could affect the population’s access to energy. As a result, they often act as the first line of defence, absorbing shocks through their own cash flows. Historically, governments have subsequently closed this gap through fiscal transfers to compensate SOEs for this implicit subsidy; however, given the elevated fiscal burden most economies face post Covid‑19, there is significant uncertainty regarding the extent of such support.
Importantly, having oil reserves does not guarantee that a country or its economy will fare better than its peers. Mexico, for example, has a solid crude oil reserve base and is an exporter; nevertheless, it is a net importer of refined oil products. This imbalance is exacerbated by the fact that roughly 70% of the country’s energy mix consists of natural gas, which is largely imported.
The countries best positioned to benefit from the current oil price shock are Brazil and Colombia, albeit from different angles. Their national champions are fully integrated companies that export approximately 30% and 50% of their crude oil production, respectively. Both firms operate under social mandates, and their respective political leaders have already taken populist measures to support local consumption. An additional positive factor is their relatively strong renewable footprint: only around 30% and 20% of power generation in Brazil and Colombia, respectively, depends on gas.
Another area of opportunity in the region lies with independent oil producers and oil service companies. A substantial number of small firms operate in these segments, particularly in Mexico, Colombia, and Brazil. By nature, these companies tend to be small, highly concentrated in their asset portfolios, and exhibit high beta in financial performance. Elevated oil prices can significantly boost cash generation and incentivise greater risk‑taking in exploration and appraisal activities aimed at increasing reserves. Historically, this niche in the market has been lowly‑rated and has shown a high incidence of defaults in the region.
A clearer area of opportunity for Latam exists in frontier markets – namely Ecuador and Venezuela – through the sovereign credit channel. Both economies are heavily reliant on oil production, and higher oil prices would not only improve their fiscal positions but could also revive investor interest in rehabilitating Venezuelan oil fields and Ecuadorian assets that have deteriorated over several years.
Conversely, a key area of concern for the region is downstream and petrochemical activity. Like the rest of the world, Latam’s petrochemical industry has faced a challenging environment due to weak demand and persistent oversupply, which have depressed crack margins. Rising oil prices will add further pressure, particularly as most companies are unable to fully pass through higher input costs.
Overall, energy in Latam remains a high yield story, driven not only by sovereign ceilings but also by the underlying structure of the industry. Fundamentally, the region is relatively well positioned to withstand higher oil prices; however, it remains a higher beta investment theme. In a risk-off environment, performance is likely to be unfavourable, which has prompted a shift in the regional recommendation to Neutral.
Asian equities
Asia is exposed to shocks from higher global energy prices as most Asian economies run an oil and gas trade deficit. Higher oil and gas prices serve as an adverse term of trade shock for a number of economies in Asia and fiscal policy is likely to be the first line of defence to buffer the shock to households during an extended period of elevated prices.
Therefore, investors also need to consider the impact on current account and fiscal balances for economies. The pass-through of sustained higher energy prices will become more visible on the trade balance for Asian economies, as surpluses narrow and deficits widen. Inflationary pressures, particularly for economies which do not have retail fuel subsidies, will also rise. The trade deficit will likely widen noticeably for the Philippines and India, with headline consumer price index (CPI) inflation higher.
Conversely, for economies with fuel subsidies such as Indonesia, the impact on the fiscal balance is clearer. Higher oil prices will likely lead to wider fiscal deficits, while Thailand and Vietnam have a cross-subsidy fund that helps cushion the fiscal impact in the near term. In comparison, Singapore’s fiscal position is the most flexible, with fiscal resources to mitigate any potential fallout to households or businesses.
With regards to the impact on Asian equities, however, besides considering the fundamental effect on economies, we also need to consider other factors such as the composition of equity indices, valuations and other country-specific developments.
Favour Hong Kong/China and Singapore equities in Asia
Within Asian equities, we favour Hong Kong, China and Singapore equities, but have Underweight positions on Indonesia and Philippines equities, along with Neutral positions for the remaining regions.
China is less sensitive to a prolonged closure of the Strait of Hormuz than many Asian peers due to reasons such as the accumulation of one of the world’s largest strategic and commercial crude reserves. Oil and natural gas also play a limited role in China’s electricity generation. Together they account for roughly 4% of China’s power mix, significantly lower than the average 40–50% share observed in many ASEAN economies. China’s power system is primarily supported by coal, hydropower, solar, wind, and nuclear energy. China’s rapid transition toward electric vehicles and renewable energy also provides an additional structural hedge.
That said, China’s industrial sector is not immune, as petrochemical feedstock prices remain closely linked to crude oil. In short, China is less exposed to the first order “lights-out” risks typically associated with an energy crisis, though it remains vulnerable to second-order effects through higher input costs and inflationary pressure if elevated oil prices are sustained.
Overall, we see an attractive risk-reward profile for Hong Kong/China equities given the considerable growth potential powered by significant technological innovation, scale and efficiency along with undemanding valuations. Liquidity dynamics also remain constructive – household savings remain high, interest rates are low and alternative domestic investment outlets provide limited appeal. This strengthens the relative attractiveness of equities as a destination for household capital. We maintain our Overweight position on Chinese equities.
While Singapore runs an oil and gas trade deficit, this percentage as a proportion of GDP is lower compared to many Asian peers and the country also has a relatively flexible fiscal position. According to the Minister-in-charge of Energy and Science & Technology, Singapore holds stockpiles of LNG and diesel sufficient to last for months, having diversified sources since the global energy crunch of 2022.
Within Singapore equities, financials, real estate and multi-industrial companies dominate key indices and their relatively higher dividend yields lend to the perception of a more defensive market. In addition, the continued roll-out of the Equity Market Development Programme (EQDP) should drive greater liquidity and unlocking of value among Singapore equities. We maintain our Overweight position on Singapore equities.
For Indonesia which has direct fuel subsidies in place, the impact of higher oil prices will mainly be absorbed by the fiscal balance. There had been a series of negative developments such as the downgrade of the country’s rating outlook by Moody’s and Fitch (on fiscal health, policy and governance concerns), while MSCI and FTSE Russell have suspended reviews of their indices for Indonesia pending progress in resolving free-float data and broader market integrity concerns. Bank Indonesia’s (BI) ability to further cut interest rates has been also curtailed by the focus on FX stability amid pressure on the IDR. We maintain our Underweight position on the country’s equities.
For the Philippines, its oil and gas deficit is about 2.9% of GDP, while the country relies on the Middle East for a third of its crude oil and 40% for natural gas as a percentage of domestic consumption. The lack of fuel price controls in the Philippines implies that the impact of higher energy prices will be mainly felt via higher inflation. Bangko Sentral ng Pilipinas (BSP) Governor Remolona has also warned that the conflict in the Middle East poses risks to overseas remittances, besides inflation. This is because around 2.5 million overseas Filipino workers (OFW) are based in the Middle East and account for about 18% of total remittances which forms a crucial pillar of the economy. Governor Remolona also warned previously that the BSP could raise interest rates if global oil prices reach USD100/bbl and the USD continues to strengthen. Meanwhile, government agencies are expected to cut fuel use along with broader measures to cut travel while the country looks to boost coal imports and power generation. We currently have an Underweight position on the country’s equities.
Malaysia should weather the current energy storm better than many Asian peers but its equities would not be immune to the risk-off sentiment from the geopolitical tensions in the Middle East, and there could be risk-off flows into safe haven assets and dampen investor appetite for smaller ASEAN markets. Its fundamentals remain stable though, and at 14.6x forward price-to-earnings (P/E) ratio, we find the risk-reward profile for Malaysian equities to be fairly balanced under an increasingly uncertain global environment, and have a Neutral view on the country’s equities.
Thailand stands out as a country whose oil and gas trade deficit as a percentage of GDP is relatively high for the region. As of Jan 2026, its power generation fuel mix comprises 63% from gas, 22% renewables and 13% coal, with gas prices sourcing mainly from domestic gas supply (64% of total gas supply) and Myanmar (9%). Imported LNG accounts for about 27% of gas consumption, the bulk of which comes from Qatar. The disruption of Qatar LNG could be partially supported by hydropower and coal reserve backup e.g. the Mae Moh power plant, a major coal-fired facility with 2,200-2,600MW or 5.5-6.5% of peak power demand in Thailand, with power reserve margin in Thailand at 30-40%.
The government was one of the earliest within ASEAN to implement swift measures, banning all petroleum product exports and the activation of an “Energy Emergency Surveillance Centre”. The National Fuel Fund will also be used to subsidise pump prices. The removal of the earlier political overhang resulting in greater political stability and clearer policy direction should also continue to provide relative support to Thai equities and we maintain our Neutral view.
For India, any spike in oil prices has implications for the country’s current account deficit, fiscal deficit and inflation. The country’s equities are vulnerable to oil supply shocks. However, exposure of global funds to India is at two-decade lows and may limit the relative magnitude of downside compared to other more overbought markets during times of volatility. Indian equities are trading at about 19.1x forward P/E, lower than the 10-year historical average of 19.7x, and we maintain our Neutral view.
On a relative basis, South Korea’s wider oil and gas balances would mean greater downside risks to growth from higher energy prices. South Korea’s equity market performance during previous oil shocks is a relative laggard among Asian peers.
With the significant rally in South Korean equities prior to the US-Iran war, investors may be keen to lock in some profits given the uncertain market environment. However, it is important to note that for the MSCI Korea Index, two key stocks account for more than half of the index, and these stocks have been supported by the memory up-cycle so far. On balance, we have a Neutral rating for South Korea.
Taiwan operates one of the more energy-exposed models in Asia with high import dependence and about 37% of LNG supply linked to Middle East routes via the Strait of Hormuz. At the same time, Taiwan supports strategic artificial intelligence (AI) manufacturing and rapidly expanding datacentre loads which are less tolerant of energy volatility.
With nuclear phased out in May 2025 and renewables still a small share of generation (13%), the coal-to-gas transition has pushed gas to about half of the power mix.
Taiwan imported about 24mt of LNG in 2025, with Qatar supplying 33.5%, Australia 33.4% and the US about 10%. Adding the UAE and Oman lifts total Middle East exposure to about 37%. State-owned refiner CPC Corporation plans to lift US LNG to about a third of imports by 2026, anchored by a 25-year Cheniere SPA signed in February and deliveries starting June, reducing direct Hormuz exposure. Still, longer shipping times limit short-term flexibility.
Meanwhile, Taiwan is also discussing restart timelines for nuclear. This positions nuclear as a medium-term resilience catalyst, rather than a near-term shock absorber.
The semiconductor industry is a key pillar for the country and production is electricity intensive. Morningstar estimates that energy costs make up 10% of cost of sales for foundries, so a 30% jump in effective energy costs will pose 3 percentage points (ppt) downside to gross/operating margins. However, the actual hit is usually smaller because foundries tend to pass on higher actual costs to fabless/integrated device manufacturers (IDM) customers with a lag. That said, other potential disruption such as helium which is critical for semiconductors may also have an impact because of the Middle East situation. We have a Neutral view on Taiwan equities.
Sector implications
Among sectors, energy is a clear beneficiary of higher energy prices while transport (airlines) is most vulnerable in terms of impact on earnings. That said, even within the energy sector, not everyone benefits from higher crude oil prices. The sector comprises upstream, midstream and downstream companies, and the downstream segment e.g. refiners and petrochemical producers would see greater feedstock costs while refined product prices may adjust with a time lag. Selectivity is key. Some upstream producers also hedge their output, while midstream companies are generally less affected by fluctuations in energy prices.
In the transport industry, higher oil prices drive up fuel costs but certain companies may benefit through indirect mechanisms like increased demand for alternative services or by successfully passing on costs to customers via fuel surcharges. The industry is diversified and includes airlines, logistics, trucking and trucking. Likewise, energy intensive sectors also stand to be impacted but there could be cost pass-through mechanisms as well.
Sectors which are generally less impacted by higher oil prices are the communication services and healthcare sectors, due to limited direct exposure; effects will generally be felt via secondary transmission channels. The Middle East situation could result in supply disruptions of products beyond crude oil and refined products.
Developments in the Middle East will result in a greater focus on improving energy security by countries around the world. There will be a heightened sense of urgency relating to “energy independence” or at least “energy resilience”, and this also accelerates investments in renewables, battery storage and energy efficiency etc. At the same time, the importance of supply chain resilience is highlighted once again as certain industries are impacted when there are supply disruptions for feedstocks.
As such, companies with exposure to the broader themes of energy and supply chain resilience are set to ride on positive structural trends, though investors should also take into account valuations and company specific factors in their stock selection process.
Disclaimers and Disclosures
This material is prepared by Bank of Singapore Limited (Co Reg. No.: 197700866R) (the “Bank”) and is distributed in Singapore by the Bank.
This material does not provide individually tailored investment advice. This material has been prepared for and is intended for general circulation. The contents of this material does not take into account the specific investment objectives, investment experience, financial situation, or particular needs of any particular person. You should independently evaluate the contents of this material, and consider the suitability of any product discussed in this material, taking into account your own specific investment objectives, investment experience, financial situation and particular needs. If in doubt about the contents of this material or the suitability of any product discussed in this material, you should obtain independent financial advice from your own financial or other professional advisers, taking into account your specific investment objectives, investment experience, financial situation and particular needs, before making a commitment to purchase any product.
The Bank shall not be responsible or liable for any loss (whether direct, indirect or consequential) that may arise from, or in connection with, any use of or reliance on any information contained in or derived from this material, or any omission from this material, other than where such loss is caused solely by the Bank’s wilful default or gross negligence.
This material is not and should not be construed, by itself, as an offer or a solicitation to deal in any product or to enter into any legal relations. You should contact your own licensed representative directly if you are interested in buying or selling any product discussed in this material.
This material is not intended for distribution, publication or use by any person in any jurisdiction outside Singapore, Hong Kong or such other jurisdiction as the Bank may determine in its absolute discretion, where such distribution, publication or use would be contrary to applicable law or would subject the Bank or its related corporations, connected persons, associated persons or affiliates (collectively “Affiliates”) to any licensing, registration or other requirements in such jurisdiction.
The Bank and its Affiliates may have issued other reports, analyses, or other documents expressing views different from the contents of this material, and may provide other recommendations or make investment decisions that are contrary to the views expressed in this material, and all views expressed in all reports, analyses and documents are subject to change without notice. The Bank and its Affiliates reserve the right to act upon or use the contents of this material at any time, including before its publication.
The author of this material may have discussed the information or views contained in this material with others within or outside the Bank, and the author or such other Bank employees may have already acted on the basis of such information or views (including communicating such information or views to other customers of the Bank).
The Bank, its employees (including those with whom the author may have consulted in the preparation of this material))and discretionary accounts managed by the Bank may have long or short positions (including positions that may be different from or opposing to the views in this material or may be otherwise interested in any of the product(s) (including derivatives thereof) discussed in material, may have acquired such positions at prices and market conditions that are no longer available, may from time to time deal in such product(s) and may have interests different from or adverse to your interests.
Analyst Declaration
The analyst(s) who prepared this material certifies that the opinions contained herein accurately and exclusively reflect his or her views about the securities of the company(ies) and that he or she has taken reasonable care to maintain independence and objectivity in respect of the opinions herein.
The analyst(s) who prepared this material and his/her associates do not have financial interests in the company(ies). Financial interests refer to investments in securities, warrants and/or other derivatives. The analyst(s) receives compensation based on the overall revenues of Bank of Singapore Limited, and no part of his or her compensation was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this material. The reporting line of the analyst(s) is separate from and independent of the business solicitation or marketing departments of Bank of Singapore Limited.
The analyst(s) and his/her associates confirm that they do not serve as directors or officers of the company(ies) and the company(ies)or other third parties have not provided or agreed to provide any compensation or other benefits to the analyst(s) in connection with this material.
An “associate” is defined as (i) the spouse, parent or step-parent, or any minor child (natural or adopted) or minor step-child, or any sibling or step-sibling of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, parent or step-parent, minor child (natural or adopted) or minor step-child, or sibling or step-sibling is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst.
Conflict of Interest Declaration
The Bank is a licensed bank regulated by the Monetary Authority of Singapore in Singapore. Bank of Singapore Limited, Hong Kong Branch (incorporated in Singapore with limited liability), is an Authorized Institution as defined in the Banking Ordinance of Hong Kong (Cap 155), regulated by the Hong Kong Monetary Authority in Hong Kong and a Registered Institution as defined in the Securities and Futures Ordinance of Hong Kong (Cap.571) regulated by the Securities and Futures Commission in Hong Kong. The Bank, its employees and discretionary accounts managed by its Singapore Office/Hong Kong Office may have long or short positions or may be otherwise interested in any of the investment products (including derivatives thereof) referred to in this document and may from time to time dispose of any such investment products. The Bank forms part of the OCBC Group (being for this purpose Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) and its subsidiaries, related and affiliated companies). OCBC Group, their respective directors and/or employees (collectively “Related Persons”) may have interests in the investment products or the issuers mentioned herein. Such interests include effecting transactions in such investment products, and providing broking, investment banking and other financial services to such issuers. OCBC Group and its Related Persons may also be related to, and receive fees from, providers of such investment products. There may be conflicts of interest between OCBC Bank, the Bank, OCBC Investment Research Private Limited, OCBC Securities Private Limited or other members of the OCBC Group and any of the persons or entities mentioned in this report of which the Bank and its analyst(s) are not aware due to OCBC Bank’s Chinese Wall arrangement.
The Bank adheres to a group policy (as revised and updated from time to time) that provides how entities in the OCBC Group manage or eliminate any actual or potential conflicts of interest which may impact the impartiality of research reports issued by any research analyst in the OCBC Group.
Other Disclosures
Dubai International Financial Center (DIFC)
Where this material relates to structured products and bonds, this clause applies:
The Distributor represents and agrees that it has not offered and will not offer the product to any person in the Dubai International Financial Centre unless such offer is an “Exempt Offer” in accordance with the Market Rules of the Dubai Financial Services Authority (the “DFSA”).
The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers.
The DFSA has not approved the Information Memorandum or taken steps to verify the information set out in it, and has no responsibility for it.
The product to which this document relates may be illiquid and/or subject to restrictions in respect of their resale. Prospective purchasers of the products offered should conduct their own due diligence on the products.
Please make sure that you understand the contents of the relevant offering documents (including but not limited to the Information Memorandum or Offering Circular) and the terms set out in this document. If you do not understand the contents of the relevant offering documents and the terms set out in this document, you should consult an authorised financial adviser as you deem necessary, before you decide whether or not to invest.
Where this material relates to a fund, this clause applies:
This Fund is not subject to any form of regulation or approval by the Dubai Financial Services Authority (“DFSA”). The DFSA has no responsibility for reviewing or verifying any Prospectus or other documents in connection with this Fund. Accordingly, the DFSA has not approved the Prospectus or any other associated documents nor taken any steps to verify the information set out in the Prospectus, and has no responsibility for it. The Units to which this Fund relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers should conduct their own due diligence on the Units. If you do not understand the contents of this document you should consult an authorized financial adviser. Please note that this offer is intended for only Professional Clients and is not directed at Retail Clients.
These are also available for inspection, during normal business hours, at the following location:
Bank of Singapore
Office 30-34 Level 28
Central Park Tower
DIFC, Dubai
U.A.E
Hong Kong
Bank of Singapore Limited (Hong Kong Branch) is an Authorized Institution as defined in the Banking Ordinance of Hong Kong (Cap 155), regulated by the Hong Kong Monetary Authority in Hong Kong and a Registered Institution as defined in the Securities and Futures Ordinance of Hong Kong (Cap.571). Financial products and services are only offered to “Professional Investors" within the meaning of the Securities and Futures Ordinance and the Securities and Futures (Professional Investor) Rules made thereunder.
This material has not been delivered for registration to the Registrar of Companies in Hong Kong and its contents have not been reviewed by any regulatory authority in Hong Kong. Accordingly: (i) the investment product may not be offered or sold in Hong Kong by means of any document other than to persons who are "Professional Investors" within the meaning of the Securities and Futures Ordinance (Cap. 571) of Hong Kong and the Securities and Futures (Professional Investor) Rules made thereunder or in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance; and (ii) no person may issue any invitation, advertisement or other material relating to the investment product whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to the investment product which is or is intended to be disposed of only to persons outside Hong Kong or only to "Professional Investors" within the meaning of the Securities and Futures Ordinance and the Securities and Futures (Professional Investor) Rules made thereunder.
Where this material involves derivatives, do not invest in it unless you fully understand and are willing to assume the risks associated with it. If you have any doubt, you should seek independent professional financial, tax and/or legal advice as you deem necessary.
Where this material relates to a Complex Product, this clause applies:
Warning Statement and Information about Complex Product
(Applicable to accounts managed by Hong Kong Relationship Managers)
Where this material relates to a Complex Product (funds and ETFs), this clause applies additionally:
Where this material relates to a Complex Product (Options and its variants, Swap and its variants, Accumulator and its variants, Reverse Accumulator and its variants, Forwards), this clause applies additionally:
Where this material relates to a Loss Absorption Product, this clause applies:
Warning Statement and Information about Loss Absorption Products
(Applicable to accounts managed by Hong Kong Relationship Managers)
Before you invest in any Loss Absorption Product (as defined by the Hong Kong Monetary Authority), please read and ensure that you understand the features of a Loss Absorption Product, which may generally have the following features:
Where this material relates to a certificate of deposit, this clause applies:
A certificate of deposit is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.
Where this material relates to a structured deposit, this clause applies:
A structured deposit is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.
Where this material relates to a structured product, this clause applies:
This is a structured product which involves derivatives. Do not invest in it unless you fully understand and are willing to assume the risks associated with it. If you are in any doubt about the risks involved in the product, you may clarify with the intermediary or seek independent professional advice.
Singapore
Bank of Singapore Limited is a bank licensed and regulated by the Monetary Authority of Singapore. The Bank is also an Exempt Capital Markets Services Entity under the Securities and Futures Act 2001 and an Exempt Financial Adviser under the Financial Advisers Act 2001.
Where this material relates to structured deposits, this clause applies:
The product is a structured deposit. Structured deposits are not insured by the Singapore Deposit Insurance Corporation. Unlike traditional deposits, structured deposits have an investment element and returns may vary. You may wish to seek independent advice from a financial adviser before making a commitment to purchase this product. In the event that you choose not to seek independent advice from a financial adviser, you should carefully consider whether this product is suitable for you.
Where this material relates to dual currency investments, this clause applies:
The product is a dual currency investment. A dual currency investment product (“DCI”) is a derivative product or structured product with derivatives embedded in it. A DCI involves a currency option which confers on the deposit-taking institution the right to repay the principal sum at maturity in either the base or alternate currency. Part or all of the interest earned on this investment represents the premium on this option.
By purchasing this DCI, you are giving the issuer of this product the right to repay you at a future date in an alternate currency that is different from the currency in which your initial investment was made, regardless of whether you wish to be repaid in this currency at that time. DCIs are subject to foreign exchange fluctuations which may affect the return of your investment. Exchange controls may also be applicable to the currencies your investment is linked to. You may incur a loss on your principal sum in comparison with the base amount initially invested. You may wish to seek advice from a financial adviser before making a commitment to purchase this product. In the event that you choose not to seek advice from a financial adviser, you should carefully consider whether this product is suitable for you.
United Kingdom
Bank of Singapore Limited, UK Branch (BOSL UK) is incorporated and registered in Singapore with the Accounting and Corporate Regulatory Authority (Registration no.:197700866R) as a public company limited by shares with head office in Singapore and operating in the UK through its UK establishment (BR027666). Bank of Singapore Limited, UK branch (FRN: 1038970) is an appointed representative of Oversea-Chinese Banking Corporation Limited, London branch. Oversea-Chinese Banking Corporation Limited (OCBC) is authorised and regulated by the Monetary Authority of Singapore. OCBC London Branch is authorised by the Prudential Regulation Authority with firm reference number 204687 and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of OCBC London Branch’s regulation by the Prudential Regulation Authority are available on request. This material is intended solely for the use of the designated recipients. Unauthorised access, use, or distribution is strictly prohibited. If you are not the intended recipient, please notify us immediately and erase all copies. Bank of Singapore Limited, UK Branch does not provide legal, accounting or tax advice. Please consult an independent professional for advice tailored to your specific situation.
This product or service is offered exclusively for investors eligible for categorisation as a professional client. This is not intended for retail clients. Any person in the UK who receives this material is deemed to have represented and agreed that they qualify as a Professional Client. Such recipients also represent and agree that they have not received this material on behalf of any persons in the UK other than Professional Clients for whom they have authority to make investment decisions on a wholly discretionary basis. BOSL UK will rely on the truth and accuracy of these representations and agreements. Any person who is not a Professional Client should neither act on nor rely upon this material or any of its contents.
Investing in financial markets carries the risk of losing capital, and investors should be aware of and carefully consider this risk before making any investment decisions. The value of investments can fluctuate, and there is no guarantee that investors will recoup their initial investment. Past performance is not indicative of future results, and the performance of investments can be affected by various factors, including but not limited to market conditions, economic factors, and changes in regulations or tax laws. Forward-looking statements should not be considered as guarantees or predictions of future events. Investors should be prepared for the possibility of losing all or a portion of their invested capital. It is recommended that investors seek professional advice and conduct thorough research before making any investment decisions. BOSL UK does not endorse any specific investments or financial products mentioned in this material. Neither BOSL UK nor its employees accept any liability for any loss or damage arising from the use of this material or reliance on its content.
Cross Border Disclaimer and Disclosures
Refer to https://www.bankofsingapore.com/Disclaimers_and_Disclosures.html for cross-border marketing disclaimers and disclosures.
ESG Disclaimer
This document contains information on ESG factors or the Bank’s process for taking into consideration, and evaluation or assessment of ESG factors.
There are currently no universally accepted environmental, social and governance (“ESG”) standards, and no consensus as to whether activities and practices or products or services are “environmentally friendly”, “sustainable”, “responsible”, “climate friendly”, etc. Evaluation of ESG outcomes or metrics may require forward-looking scenario analysis, estimates, interpretations and assumptions and may be uncertain and speculative. There may not be scientific consensus. Scientific evidence and data may not be conclusive or there may be limitations, and new evidence and data may be emerging. ESG standards may depend on subjective or value judgments. ESG standards, as well as laws, rules and regulations may differ from jurisdiction to jurisdiction. Taxonomies have been developed in different jurisdictions to classify activities as “environmentally sustainable”, “green” or the equivalent, and different taxonomies may classify the same activity differently. Achieving one ESG goal may be at the expense of, or require a compromise on, other ESG goals. The Bank’s ESG standards and evaluation or assessment of ESG factors may therefore not meet your expectations or objectives and may not be consistent with certain ESG laws, rules, regulations and standards. There is no guarantee that there will not be negative ESG outcomes, and the Bank does not give any assurance that your investments will have a positive ESG impact. You should ensure that you understand the Bank’s ESG standards and process for evaluation or assessment of ESG factors, and assess whether the Bank’s ESG standards and process for evaluation or assessment of ESG factors meets your expectations or is appropriate for you, before making any investment commitment. You are solely responsible for your own investment decisions.
The Bank relies on third party ESG ratings. While the Bank has selected its third party ESG rating providers in good faith and with reasonable care, the Bank has not independently verified the ESG ratings of third party providers. The Bank gives no representation or warranty, express or implied, as to the quality, accuracy, completeness, rigour, timeliness or verifiability of such third party ESG ratings, and shall not be responsible or liable for such third party ESG ratings. ESG ratings may be based on data that is incomplete, due to limitations or otherwise, or based on commitments and targets which may not be achieved. You should review and understand the disclosures made by such third party ESG ratings providers on their methodologies, data sources and other relevant information, and obtain advice from professional advisers as necessary.
Taking into consideration ESG factors may be at the expense of higher financial returns, especially in the short term. Although ESG risks may result in financial losses, such losses may, and if at all, only materialise in the long term. ESG factors and screening may also result in certain investments that deliver high financial returns being excluded, or limit the diversity of investments, which could in turn affect the volatility of portfolios.
