Market sentiment for 2026 among Singapore-based asset managers remains decidedly positive across the Asian landscape, according to a recent survey report.

Japan and China were identified as the most promising markets ( each cited by 21% of respondents ), followed by India ( 13% ), Singapore ( 11% ) and Taiwan ( 11% ), finds the latest IMAS Investment Managers’ Outlook Survey, which annually gathers insights from C-suite professionals across 63 Investment Management Association of Singapore ( IMAS ) member firms, which include Singapore-based fund managers and asset owners that collectively oversee more than US$35 trillion in global assets.

This regional optimism is reflected in equity forecasts: 72% of managers expect the MSCI Asia ex-Japan Index to rise by 10% to 20%, with 73% forecasting similar gains for the MSCI China Index by late 2026.

Notably, this bullish outlook persists despite the fact that 61% of respondents do not expect China’s GDP growth to accelerate, suggesting that optimism is rooted in attractive valuations, policy interventions and specific sector opportunities rather than broad macroeconomic expansion.

In the domestic market, nearly 90% of respondents expect the Straits Times Index to strengthen or remain stable, bolstered by resilient corporate earnings, robust dividend yields and government initiatives aimed at revitalizing the equity ecosystem.

Regarding currency, 46% of respondents anticipate the USD/SGD pair to weaken by 5% to 10%, while 39% expect the exchange rate to remain stable.

As for global markets and commodities:

• US Equities – Sentiment remains constructive, with 54% forecasting a 10% to 20% rise in the S&P 500.
• Gold – Investors view the precious metal favourably; 50% expect gains of 12.5% to 25%, while nearly 90% expect prices to either rise or hold steady.
• Oil – Expectations remain range-bound, with 46% projecting prices to stay flat and 25% anticipating a modest rise of 5% to 10%.

AI moving from experimentation to execution

Artificial intelligence ( AI ) adoption, the survey indicates, has matured significantly. More than half of respondents are now using AI in core investment functions, such as generating research insights and fund commentary. Leading fintech interests remain centred on advanced analytics, machine learning and generative AI.

The primary driver behind this technological pivot is operational efficiency, with productivity enhancement and cost reduction cited as the most significant benefits.

Beyond investment decision-making, respondents identified fund operations, middle-office functions and research as the areas most impacted by technological transformation.

“The focus is now on scalable business models and the practical deployment of AI to deliver measurable productivity gains,” says Jenny Sofian, the IMAS’ chair. “In an intensifying competitive landscape, the winners will be those who can marry sound investment judgment with technology-enabled operational efficiency.”

Structural pressures, market durability

When assessing threats to Singapore’s asset management industry over the next 12 months, managers continue to point to the rise of passive solutions and ongoing margin erosion as primary concerns.

However, 2026 marks the emergence of a new anxiety: the fear that the strong market performance of 2025 may be unsustainable. This suggests a heightened sensitivity to market durability alongside long-standing structural challenges.

“This year’s findings show that managers are responding to margin pressure by becoming far more selective,” notes Thomas Kaegi, the IMAS’ development committee. “Rather than broad expansion, firms are prioritizing initiatives that offer tangible outcomes – such as AI-driven productivity, a continued rotation into private assets and alternatives, and the adoption of leaner operating models.”

ESG: From differentiation to implementation

Sustainability has transitioned from a competitive differentiator to a baseline institutional capability. Environmental, social and governance ( ESG ) integration into existing strategies remains the most prevalent approach in 2026.

Notably, the drive to improve ESG disclosures beyond regulatory mandates has risen to third place in the rankings, highlighting a commitment to reporting discipline.

Conversely, the launch of new sustainable-specific asset classes has slowed indicating that firms are now embedding ESG into their total investment process rather than treating it as a standalone product category.

“[Overall,] the survey results demonstrate that fund managers are successfully adapting to sustained uncertainty,” Sofian adds, “identifying high-conviction opportunities in Asia even as geopolitical risks escalate.”