The exchange rate forecasts for the Singapore Dollar (SGD) against the New Taiwan Dollar (TWD) have recently indicated a strategic phase influenced by a combination of local economic performances and broader regional factors.
In Singapore, the Monetary Authority of Singapore (MAS) made significant monetary policy adjustments in January 2025, allowing for a more gradual appreciation of the SGD to support economic growth. This easing came as a response to lower-than-expected inflation projections, although MAS later maintained its policy in October due to stronger-than-expected economic growth, which recorded a year-on-year expansion of 2.9% in Q3. Analysts have noted that the SGD's current trading behavior appears to reflect these economic fundamentals, with the SGD to TWD rate sitting at 24.37, which is 2.2% above its three-month average of 23.85.
On the other hand, the New Taiwan Dollar (TWD) has been buoyed by robust economic forecasts, with Taiwan's GDP growth projected at an impressive 7.37% in 2025, driven mainly by heightened demand in the artificial intelligence sector. However, the TWD may face downward pressure due to the ongoing trade negotiations with the U.S. aimed at reducing tariffs, as well as significant increases in defense spending which, although politically necessary, could have implications for Taiwan's fiscal balance.
In summary, while the SGD shows some resilience due to stable economic fundamentals and policy adjustments, the TWD benefits from strong growth prospects but remains sensitive to trade developments and military expenditures. Experts suggest that these dynamics may continue to influence the SGD to TWD exchange rate, with recent stability indicating a watchful approach by the markets. This environment emphasizes the importance for individuals and businesses to stay informed on these developments for effective international transactions.
