DBS Forecast: SGD = USD by 2040! Could SG Become Next “Safe Haven” Hub?

Tiger_SG
2025-10-25
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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?

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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, the Straits Times Index may hit 10,000, and the Singapore dollar (SGD) could reach parity with the US dollar. 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?
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Comments

  • icycrystal
    2025-10-26
    icycrystal

    @nomadic_m @rL @Shyon @Aqa @koolgal @SPACE ROCKET @LMSunshine @rL @Universe宇宙 @Zarkness @HelenJanet

    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~

    • Universe宇宙
      [ShakeHands]
    • koolgal
      Yes I believe SGD can reach parity with USD.🚀🚀🚀🌛🌛🌛💰💰💰
  • MHh
    2025-10-25
    MHh
    I think it is possible for SGD to reach parity with USD by 2040. Singapore employs a strict stewardship of growing the economy and managing the strength of its currency. Although Singapore also has huge debts, it manages it and steer the economy to enable strong growth and being a safe haven for companies by having the right policies, stable government and the right workforce. This helps it strengthen against the USD.


    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.
  • Shyon
    2025-10-26
    Shyon
    DBS’s projection is bold but exciting — doubling Singapore’s GDP and seeing the STI hit 10,000 by 2040 reflects confidence in our strong fundamentals. With sound fiscal discipline, innovation, and steady capital inflows, I do think long-term appreciation of the SGD is realistic, even if the pace may be gradual.

    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.

    @Tiger_SG @TigerStars @Tiger_comments

  • koolgal
    2025-10-26
    koolgal
    🌟🌟🌟DBS $DBS(D05.SI)$ bold forecast that the Singapore Dollar (SGD) could reach parity is more than just a currency call.  It is a signal of Singapore's rising economic clout, disciplined policy and safe haven appeal.  This opens up a rich canvas for my portfolio repositioning.

    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🇸🇬🇸🇬🇸🇬🥰🥰🥰

    @Tiger_SG @TigerStars @Tiger_comments @CaptainTiger @TigerClub

  • Mkoh
    2025-10-26
    Mkoh
    分析称,在年均实际GDP增长率2.3%的推动下,新加坡名义GDP预计将从2024年的5470亿美元增长一倍以上,到2040年达到1.2万亿至1.4万亿美元之间。在货币方面,星展银行预测新加坡元可能在2040年之前或到2040年与美元平价,交易价格为1:1。
    由于新加坡的政治稳定、财政纪律、低通胀以及新加坡金融管理局通过对一篮子货币的有管理的浮动来管理的稳健货币政策,新加坡元已经被公认为地区避风港,特别是在亚洲。
    总而言之,是的,到2040年,新加坡元有很大的潜力巩固为“新”避风港,从其地区性利基演变为更具全球性的利基,特别是对于新兴市场和亚太投资组合中的美元多元化投资者而言。星展银行的展望通过预计的增长和资金流入强调了这一点,但成功取决于新加坡保持其在生产力、开放性和中立性方面的优势




  • phagefish
    2025-10-26
    phagefish
    USD: SGD has bounced from the bottom 1.25. now it is 1.3. unlikely 1:1 even in 2040 because us GDP is also growing and likely faster than Singapore. DBS themselves are firing people. GDP per capita goes up but GDP itself may be stagnant at least within the visibility, explaining DBS firing.
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