Analysts at Commerzbank have highlighted the key elements of Singapore's 2026 Budget, which prioritizes enhancing supply-side support, fostering the international expansion of SMEs, and advancing capital market development. Notably, the budget allocates new funding to both the Equity Market Development Programme and the Anchor Fund.
The Singapore Dollar (SGD) has demonstrated robust performance, outperforming many of its Asian counterparts. The USD/SGD currency pair is approaching levels not seen in a decade, while the Straits Times Index continues to reach unprecedented highs.
"Prime Minister Lawrence Wong presented the 2026 Budget yesterday, underscoring supply-side support and the development of capital markets," noted the analysts.
In the foreign exchange market, USD/SGD remained relatively stable at 1.2630 as of yesterday, edging closer to the 10-year low of 1.2580. Throughout the year, the SGD has emerged as the second-best performing currency in Asia, trailing only the Malaysian Ringgit (MYR), which is up by 4.0%, and the Thai Baht (THB) with a 1.9% increase.
Thus far in the year, the Singapore Dollar has appreciated by 1.8% against the US Dollar.