Singapore dollar rose 1.3% against ringgit from 2020–2025; MAS policy not tied to bilateral rates

The Singapore dollar appreciated against the Malaysian ringgit at an average rate of 1.3% between 2020 and 2025, Minister of State for Trade and Industry Alvin Tan told Parliament on 6 March 2026.

Tan emphasised that Singapore’s monetary policy framework does not target bilateral exchange rates.

“The Singapore dollar has appreciated against the Malaysian ringgit at an average rate of 1.3% p.a. over 2020 to 2025,” Tan said.

“However, it is important to emphasise that MAS manages the Singapore dollar against a trade-weighted basket of currencies of its major trading partners and not against any bilateral exchange rate.”

Parliamentary question on currency and labour market impact

Tan was responding to a parliamentary question filed by Yio Chu Kang MP Yip Hon Weng.

Yip asked about factors behind the Singapore dollar’s movement against the ringgit and whether a potential fall below 3 Malaysian ringgit per Singapore dollar could affect Singapore’s labour market.

He also asked whether the Monetary Authority of Singapore might adjust its policy settings or exchange rate band in response to such developments.

Tan, who also sits on the board of the Monetary Authority of Singapore, said the Singapore dollar nominal effective exchange rate has been on a gradual appreciating path since October 2021.

He added that the strength and stability of the currency are assessed primarily in relation to price stability.

“The strength and stability of the Singapore dollar is assessed against the attainment of medium-term price stability in the economy,” Tan said.

He also noted that labour flows into Singapore depend mainly on economic conditions.

“Non-resident labour flows into Singapore principally reflect the economy’s overall growth and employment prospects,” he said.

Tan said MAS would continue monitoring economic and financial developments closely.

The central bank remains prepared to adjust policy if necessary to ensure stability.

Concerns over cross-border spending

In a supplementary question, Yip asked whether the Government would consider forward-looking support measures for local retailers and food and beverage businesses.

He cited the upcoming Johor Bahru–Singapore Rapid Transit System (RTS) Link, which is expected to improve cross-border travel and potentially encourage more Singapore residents to spend across the Causeway.

He added that this could increase competition for local businesses if coupled with a weaker Singapore dollar.

Tan said the Government is studying the issue as part of broader preparations for the RTS Link.

“In fact, earlier this morning, I met with the RTS Link task force, which I chair, to look at ways in which to enhance our local businesses, their competitiveness and their ability to placemake,” Tan said.

He added that discussions involved government agencies and business representatives.

“We have met with merchants and government officials including Enterprise Singapore, HDB and NEA this morning, and we will announce these measures in due course.”

Tan said enhancements to grants and support schemes for heartland businesses have already been announced by the MTI.

The Government, he added, is preparing businesses to capture both the opportunities and challenges once the RTS Link becomes operational at the end of the year.