Latest news with #ChristopherWong
New Straits Times
5 days ago
- Business
- New Straits Times
Economists split on Singapore monetary policy after surprise growth
SINGAPORE: Economists are divided over whether Singapore's central bank will ease monetary policy or maintain current settings at its upcoming review next week, as the economy remains resilient despite global growth headwinds. Of 12 analysts polled by Reuters, six expect the Monetary Authority of Singapore (MAS) to ease its currency-based monetary policy at the July 30 review to offset an expected negative output gap. The other six forecast no change. The MAS has already eased policy twice in January and April this year in response to growth concerns triggered by US tariffs, following a tightening move in October 2022. However, recent economic data has surprised on the upside. Singapore avoided a technical recession after growing 1.4 per cent quarter-on-quarter in the second quarter, according to preliminary figures released last week. Much of the resilience is attributed to frontloading of activity. Singapore conducts monetary policy by managing the exchange rate rather than interest rates. It guides the Singapore dollar nominal effective exchange rate (S$NEER) within an undisclosed policy band and adjusts the slope, mid-point and width of the band as needed. Divergent views on the outlook Economists at Maybank expect the MAS to hold policy steady in light of the improved economic outlook. They also upgraded their 2025 GDP growth forecast to 3.2 per cent from 2.4 per cent. OCBC analyst Christopher Wong echoed this view, noting: "Having implemented two consecutive easings in the first half of 2025 by reducing the policy slope, a pause at this juncture will allow policymakers to evaluate the effects of earlier easing measures and await greater clarity on tariff-related uncertainties." However, Barclays analysts believe the MAS will further ease by flattening the S$NEER slope. "The MAS knows better than to celebrate any upside surprises to second quarter GDP too early: frontloading implies an eventual payback – likely in the second half of 2025 – while the more pernicious effects of uncertainty on investment will take time to show up," they said. Cautious tone globally Central banks worldwide are maintaining a cautious stance. The US Federal Reserve is expected to hold interest rates steady in its July meeting, while the European Central Bank left rates unchanged on Thursday after eight consecutive cuts. Singaporean authorities have cautioned that growth could weaken in the second half of 2025 as early activity subsides amid trade uncertainty. In April, the government lowered its full-year GDP growth forecast to a range of zero to two per cent, from 1.0 to 3.0 per cent previously.
Business Times
6 days ago
- Business
- Business Times
Thai baht rises to highest since 2022 on trade optimism, inflows
[SINGAPORE] Thailand's baht rose to the highest in more than three years on growing optimism over trade negotiations, the return of foreign stock inflows, and near-record high gold prices. The local currency strengthened 0.1 per cent to 32.12 per US dollar on Thursday (Jul 24), the strongest since February 2022. Finance Minister Pichai Chunhavajira said on Tuesday the nation is close to an agreement with the US to lower a threatened 36 per cent tariff on its goods ahead of the Aug 1 deadline, and expects a rate closer in line with regional neighbours. The baht has gained almost 7 per cent this year, putting pressure on authorities to curb its strength to protect the nation's economic drivers of tourism and exports. 'Bank of Thailand will continue to watch for any excessive volatility,' said Christopher Wong, senior foreign-exchange strategist at OCBC in Singapore. A break of the resistance level at 32 to 32.1 baht per US dollar may add more tailwind to the currency, he said. Thailand's foreign-exchange reserves climbed to a record US$263 billion earlier in July, partly as officials stepped up their intervention to slow the baht's appreciation. Easing tensions between two of Thailand's largest trade partners, the US and China, are also soothing investor worries. Global funds have poured a net US$345 million into Thai equities in July, on track for the first monthly inflow in 10 months. 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 On Wednesday alone, global funds poured in US$139 million into stocks, the largest single-day inflow in 10 months. The baht is also underpinned by near-record high gold prices, given the country's status as a major trading hub for the precious metal in Asia. Asian currencies Asian currencies have rallied this year as the US dollar weakened on concerns over the impact of US President Donald Trump's tariffs on the US economy. The Bloomberg Asia Dollar Index surged 7 per cent in 2025. In Thailand, the rebound in the baht is adding to concerns over the nation's economic growth, prompting some ministers and business groups to call for the central bank to weaken the currency. Tourism is faltering with the Tourism Authority of Thailand lowering its forecast for foreign tourist arrivals in 2025 to 35 million from 40 million. BLOOMBERG
Independent Singapore
23-07-2025
- Business
- Independent Singapore
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
Barnama
21-07-2025
- Business
- Barnama
MBR Marks 30 Years Of Recognising Malaysian Excellence, Resilience
Malaysia Book of Records (MBOR) Chief Executive Officer Christopher Wong spoke to Bernama in conjunction with the Malaysia Book of Recordsâ 30th Anniversary Celebration recognising the excellence and resilience of Malaysians at Q Sentral recently. --fotoBERNAMA (2025) HAK CIPTA TERPELIHARA Malaysia Book of Records (MBOR) Chief Executive Officer Christopher Wong when met by Bernama in conjunction with the Malaysia Book of Records' 30th Anniversary Celebration recognising the excellence and resilience of Malaysians at Q Sentral recently. --fotoBERNAMA (2025) HAK CIPTA TERPELIHARA By Kuvineshwaren Nedunjelian KUALA LUMPUR, July 21 (Bernama) -- The Malaysia Book of Records (MBR) has evolved its identity over the past three decades, while remaining steadfast in its mission to celebrate the spirit of human excellence among Malaysians. Established in 1995, MBR has become synonymous with recognising extraordinary achievements and is now proudly marking its 30th anniversary. MBR chief executive officer Christopher Wong, who has helmed the organisation since 2015, said MBR has grown beyond just being a record-keeping organisation, but it now serves as a powerful certification platform that empowers individuals and corporations to strengthen their brand identity. 'In the beginning, when we grew up looking at Guinness World Records, it's all about achievements when it comes to things like the tallest person, the fastest person, or the shortest person, or anything that's longest in terms of architecture, or in terms of anything else that's measurable. 'But now fast forward 30 years, MBR has now evolved to become like a branding activation platform, where we look at this organisation as a body that certifies achievements by many individuals and even corporate companies are looking to brand themselves with such feats,' he told Bernama in an exclusive interview. Wong emphasised that while the organisation's core mission of recognising records remains unchanged, MBR is working to adapt to the changing media landscape, moving to focus on meaningful and inspirational content in the near future. Since joining MBR, Wong has overseen over 5,000 records and one record however, continues to leave a profound impact on him, a testament to sheer human willpower by double amputee Azzrulkhan Hasrullah Matsah, better known as Adam. 'He (Adam) crawled up to the summit of Mount Kinabalu in 2016. That takes a lot of grit, perseverance, and discipline. I have done Mount Kinabalu. I mean, with able legs, it's not easy.
CNBC
21-07-2025
- Business
- CNBC
Singapore dollar exhibits safe-haven currency features. But it's no yen or Swiss franc — yet
In times of uncertainty, investors turn to safe-haven assets — gold, Treasuries as well as currencies such as the Japanese yen, U.S. dollar and the Swiss franc. These assets are expected to retain or increase their value during periods of market turbulence. While the greenback remains the world's reserve currency of choice, it has been weakening. The dollar index has fallen over 9% year to date. The outlook for the Japanese yen has been clouded by trade worries. Against such a backdrop, analysts suggest there could be an alternative in the making: the Singapore dollar. Christopher Wong, FX strategist at OCBC told CNBC that the SGD already functions like a "quasi safe-haven" currency, particularly within Asia and emerging markets. "While it does not possess the same global status as traditional safe havens like the USD, JPY [Japanese yen] , or CHF [Swiss franc], SGD tends to exhibit defensive characteristics during episodes of financial stress — especially those centered in Asia." Wong said. The SGD has been strengthening against the dollar, gaining about 6% year to date, with Jefferies reportedly forecasting that the currency could reach parity with the dollar in the next five years. "The SGD is indeed one of the world's safe havens, but it may not be 'the' next safe haven," according to Omar Slim, co-head of Asia Fixed Income at PineBridge Investments. "What makes it a safe haven is the strength of Singapore's institutional framework, the solid and resilient economic foundations of Singapore, as well as strong policy making, especially when it comes to fiscal prudence," he said. Felix Brill, chief investment officer at VP Bank, agrees that the SGD has many characteristics of a modern safe haven, including macroeconomic stability, strong institutions, a large current account surplus, and low political risk. Brill said that Singapore's monetary policy framework has delivered "exceptional stability" to the currency, which is exactly what safe haven flows seek. Unlike most nations, Singapore does not use interest rates to manage its currency, but instead strengthens or weakens the Singapore dollar against a basket of its main trading partners in a policy band. The exact exchange rate is not set, rather the SGD can move within the set policy band, whose precise levels are not disclosed. Jeff Ng, head of Asia Macro Strategy at Sumitomo Mitsui Banking Corporation, estimates that the policy band has a width of 4%, and said this management of the SGD means that there is limited volatility, which gives reduced risks and more certainty over the short term. While the SGD is on the right track, experts said there were some roadblocks in its way to becoming the next widely accepted global safe-haven currency. The first is the size of the SGD market. Data from the Bank of International Settlements in 2022 revealed that the USD made up 88% of the forex market, while the yen and the Swiss franc made up 17% and 5%, respectively. The Singapore dollar made up just 2%. The BIS survey is conducted every three years, the next one is due in September 2025. "Although Singapore is highly respected, it has a small economy, and the SGD does not have the trading volume or bond market depth of the yen or franc," VP Bank's Brill said. Furthermore, the monetary policy that Singapore has in place that has delivered exceptional stability for the SGD is the very thing that constrains it. Brill explains as the currency is "managed," it limits markets speculation and large-scale positioning, which in turn cap its liquidity and depth. These are key traits that investors look for in a true global safe haven. "So yes, the framework helps credibility — but hinders scale," Brill said. Other factors include Singapore's export-reliant economy. Figures from the World Bank show that exports made up 178.8% of the city-state's GDP in 2024. As such, the Monetary Authority of Singapore might not have appetite for the SGD to appreciate too much, according to Trinh Nguyen, senior economist at Natixis Corporate & Investment Banking. "Should investors buy too much SGD assets, that would push up the SGD," Nguyen pointed out, adding "If the SGD becomes uncompetitive ... MAS would not tolerate that as it sees it as detrimental to Singapore's competitiveness." SGD could be used for mitigating currency risk. Jean Chia, global chief investment officer at Bank of Singapore, said that the SGD could play a "very important part in terms of diversification ... So this could be the third currency in many of your currency diversification discussions." Experts agreed that Singapore's currency holds potential to gradually acquire the status equivalent to that of the Swiss franc if not the yen or the greenback. Jen-Ai Chua, research analyst for Asia at Julius Baer, said does not rule out the possibility that the SGD could evolve from the Asian safe haven to a global safe haven, but it could take time. VP Bank's Brill pointed out that safe haven status is built over decades of crisis-response behavior, and while the SGD has performed well during Asian downturns, it is not yet the first port of call during global slowdowns. "Over time, greater international use, more accessible local markets, and consistent stability could gradually change that," Brill said. Pinebridge's Slim is also optimistic about SGD's future at a time when the appeal of traditional safe havens has taken a hit: "The world is increasingly looking for safe havens, and I would expect the SGD to be top of that list ... while it might not become what the USD and JPY traditionally were, it will be increasingly seen as the CHF of Asia."
