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DBS Group Research, the bank’s award-winning research house, has just released a forecast for Singapore’s economy for the next 15 years: Singapore 2040: The next 15 years of quality and inclusive growth.
So, what’s in store for the city-state? How much wealthier can Singapore become? What should we expect? Well, much stronger currency for one, as SGD has cemented its position as one of the most stable, strong currencies:
“SGD on Track to a World-Beater: Disciplined policy and safe-haven appeal point to a stronger Singapore dollar, consolidating its role as one of the world’s most stable currencies, with the potential to reach parity with the US dollar by 2040.”
By 2040, one Singapore dollar could be worth one US dollar. This would not only make Singaporeans wealthier compared to Americans, as most goods in the city-state are imported and paid for with USD, but also boost exchange rates with neighbouring Southeast Asian nations—especially Malaysia.
Historically, the ringgit has been trailing the SGD, gradually diverging from its original 1:1 exchange rate when it was introduced in 1967, two years after the separation.
