Singapore retains its title as the most costly metropolis for high-net-worth-individuals, in keeping with Julius Baer’s 2025 International Wealth and Life-style report.
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Singapore’s central financial institution warned 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 could maintain the width and stage 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 on Wednesday.
“Prospects for the Singapore economic system stay topic to vital uncertainty, particularly in 2026. Modifications in efficient tariff charges worldwide may affect the efficiency of Singapore’s externally-oriented sectors,” MAS added.
Monetary volatility and geopolitical shocks may deepen the affect of the worldwide slowdown and add strain on Singapore’s development outlook, MAS mentioned.
Singapore’s export-dependent economy 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 a substitute strengthens or weakens the Singapore greenback in opposition to a basket of its important buying and selling companions in a coverage band.
The precise alternate fee will not be set; as a substitute, the SGD can transfer inside the set coverage band, whose exact ranges are usually 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 answer dangers to medium-term value stability.”
The choice additionally comes after reported remarks by Deputy Prime Minister Gan Kim Yong that said 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 working a commerce deficit with the U.S. and having a free commerce settlement since 2004.
The town-state has neither acquired a “tariff letter,” nor come to a commerce cope with the U.S. since “Liberation Day” on April 2.
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.
— That is breaking information, please examine again for updates.