logo
CNBC report says Singdollar may reach safe-haven status, like Swiss franc, yen, and US dollar

CNBC report says Singdollar may reach safe-haven status, like Swiss franc, yen, and US dollar

SINGAPORE: A CNBC report from earlier this week quotes industry experts as saying that the Singapore dollar may become a 'safe haven' currency — an asset that retains its value or even appreciates during times of market turbulence.
The Singdollar may end up as 'the next safe haven on a par with the Swiss franc,' the report says, noting that though the US dollar is still the top reserve currency around the globe, the dollar index has decreased by more than 9 per cent this year. Meanwhile, trade concerns cast a shadow over the Japanese yen's outlook.
The CNBC report quoted an FX strategist at OCBC, Christopher Wong, as noting that the Singdollar is not considered in the same way as the US dollar, the yen, and the Swiss franc. It 'tends to exhibit defensive characteristics during episodes of financial stress — especially those centred in Asia.'
Mr Wong pointed out that Singapore's currency already works as a 'quasi safe-haven' in the region and for emerging markets.
The Singapore dollar has gained strength against the US dollar this year, rising around 6 per cent so far. In May, an article in CNA said that the two currencies, then at $1 to S$1.29, could reach parity .
Mansoor Mohi-uddin, chief economist at Bank of Singapore, said at the time that parity between the two currencies could be achieved 'in our lifetimes' and cited the example of the Swiss franc, which did so in the wake of the financial crisis of 2008.
On July 11, Jefferies Financial said the same. Its group strategist, Christopher Wood, noted that since March 22, when the US Federal Reserve started increasing interest rates, the Singdollar 'has appreciated against almost all major currencies, confirming its status as the 'Swiss franc of Asia.''
'Wood stated that Singapore's bond yields remain attractive to conservative funds focused on wealth preservation. From a five-year perspective, it is reasonable to expect the exchange rates of the Singapore dollar to reach parity with the US dollar, implying an appreciation of 28 per cent,' Jefferies added.
What has contributed to the strength of the Singdollar is the city-state's economics, institutions, and policies regarding fiscal prudence, which are routinely described as solid. Moreover, Singapore has political stability and a deep well of reserves.
CNBC quotes VP Bank chief investment officer Felix Brill as saying that Singapore's monetary policy framework has given 'exceptional stability' to the currency, 'which is exactly what safe haven flows seek.'
Obstacles to the Singdollar reaching safe haven status, however, remain. The first is the size of the market for the Singapore dollar, compared to the US dollar, the yen, and the Swiss franc. The second is the fact that the city-state's economy is heavily reliant on exports. /TISG
Read also: SAFE HAVEN: So much cash has been deposited in Singapore that DBS lent MAS $30 billion
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Pathway to profitability: One Championship spreads wings in Asia and beyond
Pathway to profitability: One Championship spreads wings in Asia and beyond

Business Times

time31 minutes ago

  • Business Times

Pathway to profitability: One Championship spreads wings in Asia and beyond

ONE Championship – the company that's produced dozens of mixed martial arts (MMA) world champions such as Angela Lee, Stamp Fairtex and Aung La N Sang over the years – is busy growing its footprint in Asia and beyond. The Singapore-based promoter has a firm presence in Bangkok, where it stages the weekly One Friday Fights event at the Lumpinee Boxing Stadium. These shows are beamed to some 195 countries during Aisa prime-time hours. Last month, One Championship announced the relocation of its global production hub from Singapore to Bangkok, with the move aiming to 'centralise production' and better support the company's expanding content operations. Outside of the Thai capital, One Championship continues to stage major live events – there will be one show in Tokyo in November, and another in the US state of Colorado in June 2026. Earlier this year in February, the company held its second event in Qatar. 'Asia remains our core, with the Middle East and the US as strategic expansion markets,' said co-founder and group president Teh Hua Fung in an interview with BT Weekend. Teh, who joined the company in January 2018 as chief financial officer and gradually moved up the ranks, spoke about a wide range of issues such as the geographic focus and why he's confident that One Championship remains firmly on a path towards profitability. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up What are your responsibilities as co-founder and president? I run the business with (chairman and CEO) Chatri Sityodtong. We make the big decisions together with our leadership team. I oversee global expansion and business development. The areas of focus are capital markets, group strategy, and building partnerships with both businesses and governments. Where are the main commercial opportunities these days? The Middle East is a region that has very strong tailwinds – a young and very digitally savvy population, and strong government support for sports and entertainment. We are growing our operations in Qatar – it's part of the Gulf Cooperation Council, and those countries have a combined population of 60 million. Qatar represents the starting point of our entry into the Middle East, and we are going to focus on that. If you look at the broader Middle East and North Africa region, you have very large countries like Egypt that have a big appetite for sports. The US remains a very key market for us – it's the largest sports market in the world. Today, we are the only Asia-based sports property with live events carried on Amazon Prime Video in US primetime hours. This places us alongside the likes of the NFL, MLB, Nascar, WNBA and soon, the NBA. As a Singapore-headquartered company, that's something we are very proud of. 'Singapore remains our global HQ. It's home to our senior leadership, investor relations and strategic planning functions,' says One Championship's co-founder and president Teh Hua Fung. PHOTO: REUTERS What about Singapore? Singapore remains our global HQ. It's home to our senior leadership, investor relations and strategic planning functions. We value Singapore's world-class infrastructure, global connectivity and deep talent pool. We also cherish and appreciate our longstanding working relationships with government agencies here like Singapore Tourism Board, Sport Singapore, the Infocomm Media Development Authority, Economic Development Board and Enterprise Singapore – all of whom have been important partners in our journey. Revenue in the last five financial years has seen a steady increase. What's the road to profitability like, and how are you getting there? Our group-level financials are filed in the Cayman Islands, in line with our re-domiciliation several years ago. The trend is clear. Since our peak investment year in 2019, costs have declined steadily while revenues have grown in both volume and variety. A question I often get is: It's been more than a decade (One Championship was established in 2011), so why are you still unprofitable? We are not profitable yet, but the path is very visible now. That said, a precise timing is hard to predict in this business. Many of our key revenue drivers such as broadcast rights, sponsorships and hosting fees are large, multi-year deals that tend to close in uneven cycles. While we have always been confident in the direction, it's hard to call the precise timing of profitability given the natural lumpiness of the business. Fans enjoying the action at a One Friday Fights event in Bangkok. Last month, One Championship announced the relocation of its global production hub from Singapore to the Thai capital. PHOTO: ONE CHAMPIONSHIP What are the challenges? Building a global sports property requires heavy upfront investment. Unlike one-off event promoters or circuses, sports media businesses are full-stack ecosystems – you need a global brand, world-class athletes, live event infrastructure, broadcast capabilities, international distribution, and strategic partnerships. All of this requires a lot of time and money to build, and you must reach a critical mass in audience before you start seeing serious monetisation. This journey is not unique to One Championship. Formula 1 operated at a loss for decades before becoming a highly profitable business under Liberty Media. They had to build global infrastructure, including races across multiple regions, to expand their fanbase and eventually unlock commercial upside. Once scale is reached, the economics shift dramatically. Like a theme park, it's expensive to build but once it's up and running, incremental revenue outpaces fixed costs, and margins expand. That's the phase we are approaching now.

STI falls on Friday, in tandem with most regional indices; STI down 0.3%
STI falls on Friday, in tandem with most regional indices; STI down 0.3%

Business Times

timean hour ago

  • Business Times

STI falls on Friday, in tandem with most regional indices; STI down 0.3%

[SINGAPORE] The Straits Times Index (STI) closed lower on Friday (Jul 25), mirroring most regional indices. The STI fell 0.3 per cent or 11.99 points to 4,261.06. Across the broader market, advancers outnumbered decliners 335 to 245 after 2.2 billion shares worth S$1.8 billion changed hands. The trio of local banks closed lower on Friday, with DBS down 0.3 per cent or S$0.15 at S$49.06. UOB dropped 0.6 per cent or S$0.21 to S$37.15 and OCBC ended 0.5 per cent or S$0.09 lower at S$17.18. City Developments was the top gainer on the STI, closing up 2.9 per cent or S$0.18 at S$6.38. The biggest loser was Sembcorp Industries closing down 1.5 per cent or S$0.12 at S$7.72. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Across the region, major indices were mostly down, with only the Kospi up 0.2 per cent and the Nikkei 225 down 0.9 cent. Hong Kong's Hang Seng Index closed down 1.1 per cent and the KLCI down 0.4 per cent. The markets are turning cautious as the US and China enter trade talks next week in Stockholm, Sweden, said Stephen Innes, managing partner at SPI Asset Management Officials will try to stitch a deal together before the Aug 12 expiry, and there are some tricky issues to navigate namely Chinese industrial overcapacity and relief on export controls and access to more AI components. The 15 per cent tariff pact between Japan and the US is aiding the White House narrative that tariffs are levers and not a lid, he added. 'The fact that Beijing just suspended its antitrust probe into DuPont's China unit may be more than a token – it may be a breadcrumb along the path to détente,' said Innes.

Places Of The Heart: Wander and wonder at Changi Airport with architect Jonathan Christian Chin
Places Of The Heart: Wander and wonder at Changi Airport with architect Jonathan Christian Chin

Straits Times

time5 hours ago

  • Straits Times

Places Of The Heart: Wander and wonder at Changi Airport with architect Jonathan Christian Chin

Find out what's new on ST website and app. Who: Mr Jonathan Christian Chin, 34, is a Singapore-registered architect who has amassed an award-winning portfolio that includes public, residential, mixed-use and civic space design through his local and international stints. He graduated from the National University of Singapore's (NUS) Department of Architecture in 2017 with a master's degree in architecture. During his time there , he garnered honours such as the Lee Kip Lin Medal for Best Graduation Dissertation in History and Theory of Architecture, and the Aedas Medal and Prize in Architectural Design. After graduating, he worked at acclaimed architectural practices such as DP Architects (DPA) in Singapore and Bjarke Ingels Group (BIG) in Copenhagen. In 2021, outside of work, he co-created a place-making installation, called Park Yourself, with his wife Pearlyn Chang, who is 31 and a landscape architect. Their design of an Instagrammable, pandemic-resilient playground – which was shown at indoor and outdoor spaces around Singapore – won the URA-Redas Spark Challenge award in 2021. It also received the Singapore Good Design Award in 2023, attesting to Mr Chin's commitment to inclusive, community-focused design. Architect Jonathan Chin with his wife Pearlyn Chang, a landscape architect, at their award-winning installation Park Yourself. PHOTO: COURTESY OF JONATHAN CHIN In 2022, he joined BIG, headquartered in Denmark's capital, to expand his perspective on sustainability and radical innovation. In Copenhagen, he collaborated with some of the brightest minds in the industry and worked on architectural projects across Europe and Asia, gaining insights into differing design methodologies and cultures. Mr Jonathan Chin at Bjarke Ingels Group's office in Copenhagen, Denmark, in 2023. PHOTO: PEARLYN CHANG Based in Singapore, Mr Chin works independently while giving back to the architectural community by mentoring students as a guest reviewer at NUS. He also serves as a council member at the Singapore Institute of Architects, where he champions young architects and fosters a culture of appreciation for good design in Singapore. 'My first choice of a place of the heart would definitely be Changi Airport. It is a space in Singapore where architecture, emotion and memory converge. We all seek different kinds of reprieve. Some people find it in nature, some in retail therapy, others in special architectural spaces. But I have always felt that Changi Airport brings all those worlds together, especially in a city like Singapore, where heat and rapid pace are constants. One gets the greenery without the sweat, the quiet without isolation and the motion without chaos. It is not just about the airport facilities, but also what the space allows: a moment to breathe. In 2022, my wife and I took the big leap to Copenhagen, where both of us were fortunate to join the Bjarke Ingels Group, one of Europe's top design firms, to grow professionally and explore the world. When living abroad for long spells, opportunities to return to Singapore for a break become quite emotional. Walking through Changi after being overseas, I still feel quiet pride. Whenever I return home, I prefer to linger rather than rush to the exit. Sometimes, I wander through Jewel, not to shop or sightsee, but just to walk, wander and wonder. It does not just mark my journeys, but also quietly holds the 'in-between' moments. Those intervals are often where I find the most meaning. Architect Jonathan Chin at Jewel Changi Airport on July 23. ST PHOTO: SHINTARO TAY Changi Airport also holds a treasury of nostalgia for me. As a student, I used to spend late nights at the viewing gallery of Terminal 2 (T2), one of the few 24-hour sanctuaries in Singapore. I would study through the night while watching aircraft take off and land, mindful of the irony that the constant motion of planes against the sky seemed to nudge me to be more focused in my thinking. There is something therapeutic about plane-spotting – the rhythm of arrivals and departures mirroring the cadence of life. Also, my relationship with the airport is both personal and inherited. When I was growing up , my father Ignatius Chin worked at Changi Airport Group (CAG) as part of a team involved in the construction of Jewel from 2014 to 2019, a chapter of his career he is incredibly proud of. Although he is no longer with us, those scenes are etched in memory, shaping my understanding of urban spaces and belonging. He regaled us with tales about Jewel's design process, the immense coordination that went on behind the scenes and tiny details such as how they designed the Skytrain to pass through what is now called the Shiseido Forest Valley; and the complexity of the contiguous grid shell of the dome that had an outsize design impact. At the time, I did not fully grasp the significance, but I remember how animated he became when recounting his experiences. Through him, I later had the rare opportunity to meet the architect behind Jewel, Mr Moshe Safdie. As a student back then, I was still trying to understand what architecture meant beyond drawings and deadlines. Mr Safdie was warm and insightful, and the encounter left an indelible imprint by humanising architecture for me. Mr Jonathan Chin with Mr Moshe Safdie at Changi Airport in 2014. Mr Safdie led the design of Jewel Changi Airport. PHOTO: IGNATIUS CHIN It then became clear that Jewel was not just a building. It was also an idea that brought people together through light, landscape and scale. When friends visit from overseas, I do not just pick them up from the airport. I also guide them through the different terminals, starting from Jewel. If it is an early morning arrival, the tour starts with a leisurely breakfast at Ya Kun Kaya Toast, with cups of locally roasted coffee and pillowy toasted bread. Stepping into Changi Airport, whether travel-related or simply for a quiet break, helps me to reset my perspectives. Today, even when I am not travelling, I visit Changi regularly as I live in the eastern part of the island. I find that cycling via the Jurassic Mile helps me decompress after a long day at work. Other times, I catch a late-night film at the basement of Terminal 3, which has round-the-clock screenings of movies and live sports events. Growing up with the aviation landmark in the background shaped how I view space today. My father's stories and my own quiet rituals are fragments that form a larger collage centred on connection. Changi Airport is the place where I first learnt that architecture can move people – both literally and metaphorically. '

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store