Date: For Parliament Sitting on 7 May 2026
Name and Constituency of Member of Parliament
Mr Yip Hon Weng, Yio Chu Kang SMC
Question
Mr Yip Hon Weng: To ask the Prime Minister and Minister for Finance regarding the recent strengthening of the Singapore Dollar (a) what is the expected time lag for this adjustment to have a visible effect on exchange rates; (b) what is the effect of global shifts away from the US Dollar on the S$ Nominal Effective Exchange Rate (S$NEER) index basket’s currency weighting; and (c) how do these changes impact the Singapore Dollar’s stability over time.
Answer by Mr Alvin Tan, Minister of State, Ministry of Trade and Industry and Ministry of National Development, and Board member of MAS, on behalf of Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:
1. MAS conducts monetary policy by managing the Singapore dollar nominal effective exchange rate (S$NEER). Since October 2021, the S$NEER has been on a gradual appreciating path against its trade-weighted basket of currencies, consistent with the policy stance at each quarterly policy announcement. This strengthening trend will continue following the most recent April policy statement.
2. The US dollar continues to be the major currency used in international trade, including for most commodities, and the US is one of Singapore’s largest trading partners. The diversified currency composition of the S$NEER basket reflects the pattern of Singapore’s trade with its main import sources and export markets. These are structural factors that only evolve gradually over time. The weights in MAS’ currency basket are periodically reviewed and updated to reflect Singapore’s evolving trade patterns. No single currency dominates in the S$NEER basket or unduly affects the broad stability of the Singapore dollar against the basket.
3. The stability of the Singapore dollar is underpinned by the strong fundamentals of the economy, including sound macroeconomic management and a credible monetary policy framework that has delivered good inflation outcomes.
