The exchange rate forecast for the Singapore Dollar (SGD) to New Taiwan Dollar (TWD) reflects a complex interplay of monetary policies and economic conditions in both Singapore and Taiwan. Analysts observe that recent adjustments by the Monetary Authority of Singapore (MAS) have led to a more dovish monetary stance. Since January 2025, MAS has reduced the appreciation rate of the Singapore dollar amid slower inflation and lower GDP growth forecasts, highlighting adverse impacts from U.S. tariffs. This shift is expected to maintain pressure on the SGD, particularly as economic growth has been downgraded to a range of 0% to 2% for 2025.
Conversely, Taiwan's economic outlook remains robust, bolstered by a stable benchmark interest rate and a projected growth rate of 3.05% for 2025. Despite concerns regarding U.S. trade policies and their potential impact on exports, the central bank's decision to maintain interest rates indicates a commitment to sustaining economic momentum. However, currency volatility and fluctuations in the TWD have raised export risks, suggesting that external factors could complicate Taiwan's economic stability.
Currently, the SGD to TWD exchange rate hovers near 23.56, marking a slight increase over its recent average while remaining in a stable trading range. This stability may reflect currency market responses to evolving economic strategies. Analysts suggest that ongoing developments in monetary policy and international trade dynamics will be pivotal in influencing the SGD/TWD exchange rate in the coming months. Future fluctuations will likely depend on how Singapore navigates external economic challenges and whether Taiwan can sustain its growth trajectory amid global uncertainties.
