Singapore retains its title as the most costly metropolis for high-net-worth-individuals, in keeping with Julius Baer’s 2025 World Wealth and Way of life report.
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Singapore’s central financial institution warned on Wednesday that the city-state’s economic system is “projected to reasonable within the second half of 2025 from its robust tempo in [the first half],” because it saved its financial coverage unchanged.
The Financial Authority of Singapore mentioned it will maintain the width and degree at which its coverage band is centered amid commerce considerations from the Trump administration.
“Particularly, the trade-related sectors ought to see some pullback,” the central financial institution mentioned in its financial coverage assertion.
“Prospects for the Singapore economic system stay topic to vital uncertainty, particularly in 2026. Adjustments in efficient tariff charges worldwide might affect the efficiency of Singapore’s externally-oriented sectors.”
Monetary volatility and geopolitical shocks might deepen the affect of the worldwide slowdown and add stress on Singapore’s development outlook, MAS mentioned.
Singapore’s export-dependent economic system dodged a technical recession within the second quarter, with development increasing at 1.4% quarter over quarter and defying expectations of a 0.5% contraction.
On a year-over-year foundation, Singapore’s GDP grew 4.3% within the second quarter, accelerating from 4.1% within the first three months and beating expectations.
In contrast to most nations, Singapore doesn’t use rates of interest to handle its financial coverage, however as an alternative strengthens or weakens the Singapore greenback towards a basket of its major buying and selling companions in a coverage band.
The precise trade price isn’t set; as an alternative, the SGD can transfer throughout the set coverage band, whose exact ranges usually are not disclosed.
The transfer comes after the central financial institution had eased financial coverage twice earlier in 2025, and mentioned that it’s now “in an applicable place to reply to dangers to medium-term value stability.”‘
Oxford Economics economist Sheana Yue mentioned the choice by MAS was most probably resulting from Singapore’s robust GDP efficiency within the first half of the yr.
Nevertheless, Yue additionally pointed to the MAS’ language of an “applicable place”, which advised that the central financial institution is open to adjusting its coverage sooner or later as U.S. tariffs chew.
Singapore’s open and trade-reliant economic system makes it susceptible to increased world commerce boundaries, Yue added, including that development momentum could soften over the remainder of the yr.
Singapore’s economic system is closely depending on exports, with exports making up 178.8% of the city-state’s GDP in 2024, in keeping with the World Financial institution.
“It is unclear if Singapore will dealer a deal, though it might as an alternative fall throughout the 10%-15% bracket for smaller economies,” Oxford Economics’ Sheana Yue mentioned.
On Tuesday, Singapore Deputy Prime Minister Gan Kim Yong reportedly acknowledged the U.S. was “non-committal” on whether or not the extent of tariffs will stay at 10% for Singapore imports into the U.S.
Gan was within the U.S. from July 20 to 26, and he mentioned that “the U.S. was not within the temper to debate any low cost to the baseline tariff.”
Singapore had been hit with the ten% levy regardless of operating a commerce deficit with the U.S. and having a free commerce settlement since 2004.
Town-state has neither obtained a “tariff letter” nor come to a commerce take care of the U.S. since U.S. President Donald Trump’s so-called “liberation day” tariffs announcement on April 2.
