Singaporeans on possibility of S$ parity with US$

Independent Singapore

09-05-2025

SINGAPORE: The Singapore dollar, like other Asian currencies, performed well this week even as the United States dollar struggled amid the uncertainties brought on by President Donald Trump's tariff announcements.
Singapore's currency has risen by almost 6% so far in 2025. Meanwhile, according to some reports, Taiwan's dollar has seen an 8% spike, and South Korean, Malaysian, and Hong Kong currencies have also soared recently.
Moreover, experts have been quoted as saying they expect this to continue in the coming months, with an article in CNA even saying that the US dollar and the Singapore dollar, currently at $1 to S$1.29, could reach parity.
CNA quoted Saktiandi Supaat, the head of Maybank's FX research, as saying, 'We observe that there is a diversification away from the USD, and the SGD appears to be one of the beneficiaries of this theme.'
He touted the stability of the Singapore dollar, saying that many perceive it as a safe haven in the region. CNA added that Maybank expects the exchange rate to reach US$1 to S$1.265 by the last quarter of 2025.
Meanwhile, the chief economist at Bank of Singapore, Mansoor Mohi-uddin, said that parity between the two currencies could be achievable 'in our lifetimes' and cited the example of the Swiss franc, which did so in the wake of the financial crisis of 2008.
Netizens responding to the CNA report have had mixed reactions, with some saying they had a hard time accepting the idea of parity.
Others said they believe it may happen.
'In 20 years, SGD has already appreciated 25% against the USD. So yeah, 1 to 1 is a very real possibility within our lifetimes. Way weirder things have happened,' wrote a Reddit user.
He warned, however, that this would be an unwelcome development for some, adding, 'This is definitely bad news for the 18-year-old who just opened his IBKR account and is dumping his entire NS paycheck into the S&P 500 every month. After all, US markets have returned 13% pa for his entire life, so it must remain that way into the future forever.'
While some expressed concerns over the implications for Singapore's economy, others fretted over what this would mean for living costs.
'We are already considered expensive compared to other SEA countries. If our currency becomes 1:1 with the US, many MNCs (multinational corporations) would rather go elsewhere to set up their business functions, as their costs would be significantly higher, not to mention our exports becoming more expensive for the consumer, which would affect demand.'
Another argued otherwise, saying, 'If this happens (1 SGD:1 USD), it means SGD is very strong and whatever we export is more expensive and, thus, affects our export trade. It might also affect tourism as it will be more expensive for tourists.
'Conversely, it would be good for imports and our holiday trips due to the cheaper exchange rate.'
Some answered that if Singapore were too expensive for multinational companies to set up shop in, people would lose their jobs. /TISG
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