With the ongoing tariff tensions between the US and China affecting financial markets, many investors are growing concerned about the possibility of a global recession.
As an open and trade-reliant economy, Singapore would inevitably feel the impact if global growth slows or contracts.
In such a scenario, investors may seek to add stability to their portfolios by turning to stocks listed on the Singapore Exchange (SGX).
Here are some “recession-proof” SGX-listed stocks that investors can consider if concerns about a global economic slowdown materialise.
Sheng Siong (SGX: OV8)
Anyone familiar with suburban malls or HDB estates in Singapore has likely visited a Sheng Siong supermarket for their grocery shopping.
The supermarket chain is well-regarded for offering value-for-money on everyday essentials and is generally seen as a more affordable alternative to competitors like FairPrice and Cold Storage. As of end-March 2025, Sheng Siong operates 77 outlets in Singapore and six in China.
In its latest Q1 2025 results, Sheng Siong reported revenue of S$403 million — a 7.1% increase year-on-year. Net profit for the same period rose 6.1% to S$38.5 million.
Given its strong value proposition and its track record of expansion even during the Covid-19 pandemic, Sheng Siong is well-positioned to continue performing solidly in the face of an economic downturn.
In fact, during a recession, demand for more affordable grocery options could grow, with some consumers potentially switching from FairPrice or Cold Storage to Sheng Siong.
The company also pays a dividend, with a current yield of about 3.6%, making it a potentially attractive option for income-seeking investors.
Sembcorp Industries (SGX: U96)
Next on the list is Sembcorp Industries, a utilities and clean energy operator that owns a wide range of gas-powered assets supplying energy to Singapore and the broader Southeast Asia region.
In 2020, the company spun off its marine arm, Sembcorp Marine, to focus exclusively on energy generation and integrated urban solutions, with a strong base in natural gas and a growing portfolio in clean energy.
Today, Sembcorp Industries provides essential and reliable power, supported by a renewable energy portfolio with a total generation capacity of 17.2 gigawatts (GW). This includes wind, solar, and energy storage systems across markets such as China, India, Vietnam, Singapore, the Philippines, Indonesia, and Oman — all regions where demand for energy remains robust.
For the full year of 2024, the company’s net profit held steady at S$1.01 billion. However, its integrated urban solutions segment recorded impressive growth, with profits rising 40% year-on-year.
In the event of a recession, Sembcorp Industries is likely to remain resilient given the essential nature of its services — electricity and energy, which are needed regardless of economic conditions. Its strategic shift towards renewable energy also supports its long-term growth potential.
Additionally, the company has steadily increased its dividend in recent years and offers a dividend yield of about 3.5%, appealing to income-focused investors.
SPDR Gold Shares (SGX: GSD)
Finally, while this isn’t a company stock, investors can gain exposure to gold directly on the SGX through the SPDR Gold Shares ETF.
Gold has long been viewed as a safe-haven asset, especially during economic uncertainty. It has historically performed well during recessions — for example, during the Global Financial Crisis (GFC) of 2007–2009, gold prices rose by approximately 30%, even as the S&P 500 Index fell nearly 50%.
As a defensive asset, gold can effectively hedge against economic downturns. The SPDR Gold Shares ETF offers a convenient and liquid way for investors to gain exposure to gold without needing to buy and store physical bullion.
More recently, gold has reached record highs amid global uncertainty, driven by concerns around President Trump’s tariff policies and growing fears of a potential recession. Should a global downturn materialise and interest rates decline, gold will benefit further due to its defensive characteristics.
The SPDR Gold Shares ETF is available on the SGX in both US Dollars (SGX: O87) and Singapore Dollars (SGX: GSD), offering investors the flexibility to choose their preferred currency.
However, investors should be aware that the ETF charges an annual expense ratio of 0.40%, which is relatively high compared to other broad-based global equity ETFs.
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