Is there a need to allocate a portion of my portfolio to Singapore market?

You do not need to consider Singapore market at all. Many said Singapore market is good for dividends, but can anyone list a few local companies that consistently hike their dividends year after year for the last 20-30 years without dividend cut? Dividend investing is looking at consistent dividend growth not just high dividend yield (which is inconsistent and may be cut anytime). Companies which can consistently hike their dividends for last 30-40 years demonstrate the strength and growth of the organizations. Dividend growth also able to cushion the effect of inflation. You can cruise in the ocean, why stuck yourself paddling a sampang in a pond ?

I don't especially invest in the Singapore market beyond the SG exposure given to me by the broad-based funds I invest in.

For many investors, they want to replicate the Boglehead 3 fund portfolio that is widely adopted in the US. The local equity exposure is to help align your domestic retirement expenses and spends with your equities exposure, as well as match foreign currency risk.

I personally don't think that applies to a small open economy like Singapore because of our open market (we spend more money on Google/Apple/Microsoft/Netflix than on local STI companies).

There is an inclination for investors to buy more local market, which is normal, but that can be at the expense of taking more investment risk. You can read more here: https://sg.endow.us/2XtJWLu

Depending on your age and financial goals. SG market is known to be slow and steady, US is more for capital appreciation but more volatile.

As you age, you should be balancing towards a portfolio that is more safe and steady :)

It depends on your investing goal! What are you looking for? Growth or income?

If your answer is skewed towards income, it would be good start investing generously in the Singapore market (especially REITs) as it will give you a flow of passive income in the form of dividends. The more you invest in these income stocks, the more dividend you will passively recieve.

However, we must not overlook diversification. Even though you might be interested in the idea of creating a passive income stream, you should also take advantage of the growth potential of the international market. Allocate some funds for investing into the US and HK markets so you can grow this sum of money over time into a nest egg which you can possibly use for your early retirement since you are looking at long term investing. (Which you are already doing)

In short, you can leave your international investments untouched, but you can start investing in the SG market for diversification's sake. Doing this will balance out your portfolio's volatility risk. And who dosen't like passive income? 😆

Hope this helps!​​​