Singapore Strong Fiscal Position and Currency

UBS has lowered its year-end USDSGD target to 1.24, driven by a strong fiscal outlook from Budget 2026 and anticipated tightening by the MAS.

Key Takeaways

• 1.UBS has lowered its year-end USDSGD target to 1.24 from 1.26, reflecting expectations of a stronger Singapore dollar.
• 2.Singapore's Budget 2026 is modestly expansionary, projecting a strong fiscal position of SGD 8.5bn (1% of GDP).
• 3.The Monetary Authority of Singapore (MAS) is expected to tighten monetary policy by increasing the SGD NEER appreciation pace.

Table of Contents

• An enviable overall fiscal position for FY2025E and FY2026E.
• Appendix

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