DBS Forecast: SGD = USD by 2040! Could SG Become Next “Safe Haven” Hub?
DBS Group Research just dropped a bold projection — by 2040, Singapore’s GDP could double, $Straits Times Index(STI.SI)$ may hit 10,000, and the Singapore dollar (SGD) could reach parity with the US dollar.
According to the report, Singapore’s real GDP is expected to grow at 2.3% annually over the next 15 years — outpacing most developed economies. Strong policy discipline, safe-haven capital inflows, steady productivity gains, and persistent current account surpluses could all drive the SGD’s long-term appreciation.
But here’s the catch:
If USD continues to weaken, parity with SGD could also mean USD/CNY falls from 7 to 6, potentially pushing gold prices even higher. ✨
💭 Discussion:
1️⃣ Do you believe SGD can really reach parity with USD by 2040?
2️⃣ If the USD keeps sliding, would you increase your gold allocation?
3️⃣ How would you position your portfolio for a long-term USD downtrend?
REWARDS
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Do you believe SGD can really reach parity with USD by 2040?
2️⃣ If the USD keeps sliding, would you increase your gold allocation?
3️⃣ How would you position your portfolio for a long-term USD downtrend?
All valid comments will receive 5 Tiger Coins (5-50 coins; depend on comment quality)
Tag your friends to win another 5 Tiger Coins
Join our topic and post directly or leave your comments to win tiger coins~
I won’t buy gold even if the USD keeps sliding. I think there is a possibility of the Chinese yuan being one of the world’s reserve currency. Also, there are many stocks that can offer greater yield than me holding gold. In terms of returns, I prefer to hold stock.
My preference has always been the ETF that tracks the world index eg VTI so I would keep to that. I also do thematic ETFs eg in semiconductors like SMH and this strategy has fitted my risk appetite and generated good returns. A weakening USD would affect returns but that affects almost all asset classes.
Reaching USD-SGD parity, however, is ambitious. It would require both continued SGD strength and a structurally weaker USD. If the dollar keeps sliding, I’d likely raise my gold allocation — it’s a reliable hedge against currency weakness and global uncertainty, and historically performs well in such cycles.
For portfolio positioning, I’d stay diversified with solid Asian equities, quality dividend stocks, and some exposure to gold or other real assets. The USD could stay under pressure for years, but disciplined, long-term investing remains the best way to capture these structural opportunities.
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A stronger SGD means overseas assets, especially US Dollar denominated ones become cheaper over time.
Singapore Listed Companies like DBS, OCBC and UOB may see valuation uplift, not just from earnings but from currency rerating.
However even with a strong SGD, global inflation and geopolitical risk still persist. So investing in Gold ETFs such as $SPDR Gold Shares(GLD)$ would protect my purchasing power and serve as a hedge against inflation.
So if SGD truly reaches parity with USD by 2040, it isn't just a currency milestone, it is truly a celebration of how far Singapore has risen.
Majullah Singapura🇸🇬🇸🇬🇸🇬🥰🥰🥰
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The SGD is already recognized as a regional safe haven, particularly in Asia, thanks to Singapore's political stability, fiscal discipline, low inflation, and robust monetary policy managed by the MAS through a managed float against a basket of currencies.
In summary, yes, SGD has strong potential to solidify as a "new" safe haven by 2040, evolving from its regional niche to a more global one, especially for USD diversifiers in emerging markets and Asia-Pacific portfolios. The DBS outlook underscores this through projected growth and inflows, but success hinges on Singapore maintaining its edge in productivity, openness, and neutrality
When SGD=USD, it mean SG Gov or many Gov will lose million to billion because US owes too much them.
Check them in the history - “community distribution“
Interestingly enough, Gold started to drop a little with expectations of some stability... maybe it's time to buy in.
I have been watching USD for years now, it can slide or spike, but things always stay at some equilibrium.
Admittedly when the current president entered the White House and made a mess on the international stage with his tariff threats and then imposing them, USD did indeed have a sustained slide but that was a little in contrast to COVID times when USD spiked. So in the medium term, it does not look too serious.
Of course, trump might cause more instability in his country, what with the prolonged government shutdown under his political party's direction, and in the medium and long term, his constitutionally illegal attempt to be USA president for a 3rd time. But who really know, maybe some uprising will occur and salvage the USA, maybe the guy forces his way to his 3rd term and truly fulfills DBS's predictions...
If the USD keeps sliding, I’d moderately raise gold holdings (to 5–10%) as a hedge against currency weakness and inflation. Gold performs well during dollar declines, but excessive exposure limits growth.
For a long-term USD downtrend, diversify currency exposure (SGD, EUR, AUD), favour real assets (gold, REITs, commodities), and invest in global firms with multi-currency earnings. Avoid over-leveraging in USD debt and keep liquidity for rebalancing.
Overall, balance hedging and growth — prepare for SGD strength, but don’t bet solely on parity.
至于美元持续走弱，我会考虑逐步增加黄金配置，但不会一次性“重仓”。黄金对抗货币贬值的逻辑依然成立，尤其是在利率见顶、实际利率下降的周期，金价往往更容易创新高。更重要的是，金价往往反映全球信心的流向——当大家不再信任美元，黄金自然成为共识资产。
如果美元长期下跌，我会把投资组合调整为“三分法”：三成放在黄金与新币资产保值；四成在亚洲股债市场，抓区域成长机会；剩下三成继续配置全球龙头公司以维持收益来源。毕竟，世界虽在变，但多元化与资产抗风险，始终是最可靠的生存法则。
Increasing my gold allocation is something I have considered.
Singapore's strong financial system, political stability, and robust economy make it a potential candidate to become the next "safe haven" hub。。。
Achieving parity would depend on multiple factors, such as global economic shifts, trade balances, and Singapore's continued growth, but it is a bold, long-term forecast with uncertainty
If the USD continues to weaken, gold could serve as a hedge against inflation and currency devaluation, making it a potentially attractive addition to portfolios
In a long-term USD downtrend, diversifying into assets like gold, foreign currencies, and global equities could help mitigate risks and take advantage of international growth
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