The recent developments affecting the exchange rate between the Singapore Dollar (SGD) and the New Taiwan Dollar (TWD) reflect a complex interplay of monetary policy adjustments and economic growth forecasts in both regions. Analysts note that the Monetary Authority of Singapore (MAS) has shifted its monetary policy by easing the rate of SGD appreciation to bolster economic growth amid rising external uncertainties and a downgraded GDP growth forecast for 2025, now projected between 0%–2%. This cautious stance, driven by external trade tensions and U.S. tariffs, is expected to maintain a degree of pressure on the SGD.
Meanwhile, Taiwan's economic outlook appears more stable, underpinned by a robust tech-driven economy. The Central Bank of Taiwan has maintained the benchmark interest rate at 2% and projects consistent growth of 3.05% for 2025. Despite the strong performance, U.S. tariffs pose potential risks to Taiwan's economic projections, prompting policymakers to maintain a flexible stance.
In recent trading activity, the SGD against the TWD was noted at 23.65, which is slightly above its three-month average of 23.48, indicating relative stability with a 4.3% trading range over the past months. This stability comes amid internal and external pressures across both economies. Experts indicate that the SGD's policy shifts and the TWD's recent record rally due to trade concerns suggest a multifaceted outlook for the currency pair.
As such, businesses and individuals engaged in international transactions should closely monitor these developments, as they will undoubtedly influence the SGD/TWD exchange rate in the coming months.
