The Straits Times Index (STI) has delivered a 3.3% annual total return for the 10 year period ending 31 May 2023. This is 38.4% over 10 years. Now, get this. The STI historically yields about 3% in dividends, meaning the total return was largely driven by dividends. Which brings us to the hard truth: STI’s capital gains have been insignificant and close to zero. So, why don’t Singapore stocks seem to go up at all? And should you even invest in them? Let’s explore: Small share of investment fund flow Singapore forms a small part of global institutional fund flows. Many companies listed on STI are well known only to local investors. As such, many overseas investors looking to diversify globally would only put a small part of their funds into Singapore. Singapore once seemed on the verge of becoming the public-market investor’s gateway to Asia’s emerging economies. But in recent years, it has been...