Singapore Dollar Hits 11-Year High as FDI Surges

SINGAPORE – The Singapore dollar reached an 11-year high in January 2026, buoyed by strong foreign direct investment inflows and resilient economic performance. According to a McKinsey report, the currency appreciated 6.2% against the US dollar in 2025, maintaining strength into the new year. Net FDI inflows rose to $58.6 billion in the fourth quarter of 2025, up from $42.2 billion previously.

FDI

The Economic Development Board reported a 5.3% increase in fixed asset investment commitments, with China, Europe, Japan, and the US contributing three-quarters of the total. Electronics and biomedical manufacturing accounted for 63.8% of investments. The Monetary Authority of Singapore maintained its policy stance, keeping the exchange rate band unchanged, while noting inflation may trend higher but remain contained in 2026.

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