Singapore Policy and Fundamentals Underpin SGD Resilience

Singapore's SGD is forecasted to remain resilient due to the MAS's tight S$NEER policy slope and strong macro-economic buffers, including robust Q1 growth and a high current account surplus.

Key Takeaways

• 1.The Singapore Dollar (SGD) is expected to remain resilient against the USD and regional peers, anchored by the MAS's S$NEER policy which provides an appreciation bias.
• 2.Singapore's macro fundamentals are robust, evidenced by 6% yoy GDP growth in Q1 2026 and a current account surplus exceeding 17% of GDP.
• 3.Energy security is a vital buffer; Singapore has well-diversified natural gas sources and is investing in a second LNG terminal to be operational by 2030.

Table of Contents

• Key Points
• USDSGD AND SORA 3-MONTH COMPOUNDED FORECASTS
• Singapore's policy and macro fundamentals remain supportive
• Inflation dynamics remain manageable for now
• Singapore's growth momentum remains constructive
• Financial flows also remain supportive
• Energy diversification is another critical mitigating factor
• Key risks to monitor