Earning passive income in Singapore can be one of the most effective ways to supplement your current earnings. Although it may sound too good to be true, there are so many realistic and practical methods to generate passive income streams that do not need a lot of effort once you set them up.

1. Dividend Stocks

These are shares of companies that regularly pay out a portion of their profits to shareholders in the form of dividends. Go with companies with strong financials. In order to build a diversified portfolio of dividend stocks, invest a fixed amount monthly. Through this, you can take advantage of dollar-cost averaging. Another trick you can follow is to reinvest the dividends to enjoy compounding.

2. Real Estate Investment Trusts (REITs)

REITs are listed companies that own and operate real estate assets which all generate income. You will also enjoy the potential for capital appreciation if the unit price appreciates over time due to rental income growth.

Unlike physical properties, REIT units can be easily bought and sold on the stock exchange, making them a more liquid investment.

If you want to go with this passive income in Singapore, study the different types of REITs available (retail, office, industrial, hospitality) and identify the ones that you like.

3. Singapore Savings Bonds (SSBs)

Low-risk investments are definitely helpful to everyone. Singapore Government Securities offer investors a safe way to save and invest. Start with $500 and further invest in multiples of $500 up to $200,000. The interest is paid out every 6 months and it is automatically credited into your bank account.

You may apply easily for SSBs through ATMs and internet banking. Remember that the application window opens on the 1st business day of each month and closes on the 4th last business day at 9 pm.

4. High-Yield Savings Accounts

Did you know putting your money in a high-yield savings account is one of the simplest ways to earn extra interest with minimal effort? Unlike regular savings accounts which pay very low interest rates, high-yield accounts offer interest rates of up to 3-4% per annum.

To qualify for these higher rates, you may need to do these:

  • Crediting your salary
  • Spending a minimum amount on eligible credit cards
  • Buying financial products like insurance or investments
  • Paying a minimum number of bills through GIRO

The more conditions you meet, the higher the bonus interest you earn for this passive income in Singapore. The good news is that your principal is guaranteed and your savings are kept in cash and can be withdrawn anytime.

5. Fixed Deposits

Fixed deposits are very low-risk instruments so if you have extra money around, then go for this.
You can place your funds for a fixed term ranging from 1 month to 2 to 3 years, but longer tenors usually offer higher interest rates. There is also a minimum placement amount, which varies across banks, but typically ranges from S$1,000 to S$10,000.

6. Rental Income

Do you own a private property or HDB flat? Then you can rent out a room or the entire unit. With this passive income in Singapore, you can gain consistent cash flow and have a hedge against inflation since rental rates tend to rise over time,

To succeed as a landlord, you must first set the right rental rate based on market demand, your property’s attributes, and the target tenant profile. Don’t forget to screen tenants carefully by collecting the necessary documents. You also must ensure your property is safe and well-maintained.

7. Peer-to-Peer Lending

Peer-to-peer (P2P) lending platforms help you earn interest by lending money directly to borrowers. Doing this is easier than you think. You must first sign up as an investor in a P2P lending. After you have made your investment, you’ll get paid when the borrower makes monthly repayments.

8. Robo-Advisors

These digital platforms use algorithms to build and manage investment portfolios on your behalf which means you won’t have to deal with it all the time. By automating this investment, you can grow your wealth and earn passive income. The most reliable robo-advisors in Singapore are StashAway, Syfe, Endowus, and AutoWealth.

9. Online Courses and Tutorials

If you have expertise in a particular subject, try creating and selling online courses or tutorials as a passive income in Singapore. Platforms such as Skillshare will help you create and host your offer.

Don’t forget to decide on the format of your course (video, audio, text, or a combination). You may invest time in creating high-quality, engaging content or pay someone to do it for you. Once you’ve set them up, they can continue to generate passive income forever. Just do a one-time effort and you’re all set.

10. Dropshipping

For this method, you sell products without holding any inventory. When someone places an order on your page or website, all you need to do is forward it to your supplier. You will earn a profit on the difference between the retail price and the wholesale price. You may hire someone to handle customer service inquiries and returns to maintain a positive reputation as well as encourage repeat business.

11. Rent Out Your Parking Space

This is especially high-earning in densely populated urban areas where parking is very expensive or hard to come by. You may post the parking spot online and set a price based on the demand. Consider offering the space for long-term and even off-peak hours.

12. Sell Stock Photos

Selling stock photos online on websites like Shutterstock, iStock, and Getty Images helps creatives earn royalties each time someone purchases a license to use them. As your portfolio grows, you can earn a steady stream of passive income from your photography.

13. Rent Out Storage Space

Have a garage, basement, or spare room? Try renting it out. But first, assess your available space and determine what types of items it can accommodate. Can it house boxes, furniture, or vehicles? Also, think about other factors like accessibility and security.

You may offer this space to friends first if you don’t want to post it online. Once you’ve found a renter, establish clear terms and conditions for using your space. This includes access hours, prohibited items, and of course, the payment schedules. Have a written rental agreement to protect both parties.

Try These Awesome Ways to Earn Passive Income in Singapore

Passive Income in Singapore

By now, you’re probably eyeing numerous strategies to generate passive income in Singapore with minimal effort. But before you do anything, remember that building passive income streams requires an initial investment. This includes time, effort, or even money. Also take time to understand the risks involved, and choose the ones that best align with your situation and future goals.

That said, if you need financial assistance to start your passive income journey or even meet other financial needs, MoneyIQ can help you find tailored loans with fast approval and disbursement.

Published On: June 5th, 2024

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