Credit Suisse raises its Singapore 2011 real GDP growth forecast to 4.7% from 4.2%, reflecting a more positive global outlook for 2011.

“The more positive global economic growth outlook (especially for the G3 economies) augurs well for Singapore.”

While strategist Sakthi Siva is Underweight Singapore (mainly due to valuations), she prefers export-oriented markets that will benefit from the recovery in global industrial production over domestic defensives. She says sectors that would benefit from the recovery in global IP include capital goods, transport and commodity names.

The house is Overweight capital goods, property, transport, and Underweight telecom and consumer discretionary. The house is Market Weight banks, consumer staples and financials.

Top picks are SembCorp Marine (S51.SG), Neptune Orient Lines (N03.SG), City Developments (C09.SG), Keppel (BN4.SG), Olam International (O32.SG).