SG dollar hits 11-year high in January as FDI inflows climb to $58.6b

For the full year 2025, the currency appreciated 6.2% against the US dollar.

Singapore attracted strong foreign investment and saw continued currency strength heading into 2026, according to a McKinsey report.

The Singapore dollar remained firm, trading within a narrow range against the US dollar in the fourth quarter, the report said.

For the full year 2025, the currency appreciated 6.2% against the greenback, with gains extending into 2026 as it reached an 11-year high by the end of January.

Meanwhile, foreign direct investment net inflows rose to $58.6b (US$46.1b) in the fourth quarter of 2025, up from $42.2b in the previous quarter.

The performance was further reflected in the Economic Development Board’s latest annual review, which reported a 5.3% increase in commitments to fixed asset investments last year.

China, Europe, Japan, and the US accounted for around three-quarters of total commitments. Electronics and biomedical manufacturing drew the largest shares, contributing a combined 63.8% of total investments.

The Monetary Authority of Singapore maintained its policy stance in its October 2025 and January 2026 decisions, keeping the rate of appreciation of the Singapore dollar nominal effective exchange rate policy band unchanged.

The authority expects global and domestic growth to remain relatively resilient, although downside risks could moderate expansion in 2026.

“Meanwhile, after a period of weakness, inflation could trend higher but remain contained,” McKinsey added.

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