Why your money needs a “passport”

If you’ve built up some serious savings or investments, and you’re thinking about things like your kids’ future or your own retirement, here’s something important: diversify, not just in Singapore, but worldwide too.

We love this country. It’s safe, stable, and well-run. However if you're planning for long-term goals, diversifying your investments internationally could potentially help you protect and grow your wealth even further. 

Why you should invest in more than "just Singapore"

Most Singapore investors are heavily invested in familiar names, like our local banks, REITs, and government-linked companies.

There’s nothing wrong with those.

But if something slows down our economy or hits our key industries, your whole portfolio could take a hit. 

Related:  Using diversification to protect your retirement

Here’s how global investing may help you.

1. You’re not putting everything in one basket

Investing in other countries spreads your risk. If Singapore faces a rough patch, your overseas investments can keep your portfolio balanced.

2. You plan to spend overseas anyway

Thinking of sending your kids to study abroad? Planning a retirement in Australia, Europe, or even just more overseas travel?

If your future expenses are in foreign currencies, it makes sense to hold some investments in those currencies too. It helps protect you from exchange rate shocks.

3. You get access to more opportunities

Although the Singapore stock market is home to several billion dollar companies, some big global names in tech, healthcare, and innovation aren’t listed here. If you want exposure to companies like Apple, Microsoft, or luxury brands like LVMH, you'll have to look overseas.

Additionally, emerging economies in Asia and the rest of the world tend to offer different investment opportunities to what we have in Singapore. Some companies in these countries are experiencing fast rapid growth, albeit with higher risk as compared to a stable and well-developed market like Singapore.

4. It may be better for the next generation

If you’re thinking about your family’s future, international investments make your portfolio more well-rounded and ready to be passed on. You’re not just growing wealth, you’re building something lasting.

Read more: How to get exposure to the Singapore and Asian bonds market

Read more: Diversify to achieve better investment outcomes

It’s easier than you think

You don’t need to go it alone. There are some simple options you may take to make global investments:

• Ask a wealth manager or your financial representative for options to build a global portfolio that suits your goals.
• Consider global ETFs, unit trusts, or robos that include the US, Europe, and emerging markets.
• Look at international properties, global REITs, or even foreign bonds.

You have the means: now it’s just about being more intentional.

Final thought

You’ve worked hard to build your wealth. Don’t let it sit in one corner of the world. The global economy is full of opportunity and surprises. Diversifying across countries helps you stay ahead and sleep better at night.

Your money should go where the growth is and where your future might take you.

Let it travel. It’s time to think beyond the border.