Singapore PM rejects currency weakening for competitiveness

Singapore Prime Minister Lawrence Wong dismissed the idea of weakening the Singapore dollar to enhance competitiveness, stating the country must rely on its economic strengths instead.

Wong emphasized that a strong and stable currency is expected if the economy performs well, helping to contain imported inflation.

During a discussion with DBS CEO Tan Su Shan at the Asia Future Forward Conference, Wong noted that Singapore's reputation as a safe haven supports the local currency, though it remains a costly place to do business.

The Monetary Authority of Singapore (MAS) manages monetary policy through the exchange rate, adjusting the Singapore dollar against a basket of currencies from major trading partners.

The Singapore dollar has strengthened by nearly 0.4% against the U.S. dollar since the start of the year, reflecting the country's reliance on international trade and imports.

Wong acknowledged the trade-offs of a strong currency, including higher export costs, and urged businesses to account for currency strength alongside other operating expenses in Singapore.