Welcome to Pure FX's latest update of the pound to Singapore dollar interbank exchange rate.
Sterling flies high versus the Singapore dollar! The pound to Singapore dollar interbank exchange rate has hit 1.8271 today, its highest in 15 months, or since June 24th 2016. By contrast, back on August 23rd this year, a month ago, sterling stood at just 1.7416 against Singapore's currency. Hence, the pound has since risen by +4.9%, or +8.5 cents.
To put this into context, if you intend to transfer money from the UK to Singapore, either to emigrate, buy a property, or import and export as part of your business, you'll now receive a far higher total in your Singapore bank account!
Singapore dollar weakens, as Singapore's GDP growth uneven
The pound has strengthened against the Singapore dollar, first because Singapore's economic growth is uneven, says a new survey by the Monetary Authority of Singapore (MAS). According to the quarterly MAS survey of economists, Singapore's manufacturing sector is racing ahead, while construction is set to decline by -4.2% in the next few months, and accommodation by -1.5%.
This has dragged down the Singapore dollar, because while the MAS survey suggests that Singapore's GDP will continue to rise, economic growth will be uneven, and concentrated in only a few sectors!
SG dollar declines, as Singapore productivity growth slow
Moreover, the pound to Singapore dollar interbank exchange rate has also hit this 15-month high, because Singapore's productivity growth is sluggish. In particular, back in 2010 Singapore's prime minister Lee Hsien Loong set up a US$2.3 billion program, to lift Singapore's economic productivity by +2-3% a year.
Since then though, Singapore's productivity growth has reached just +0.5% a year. This tells us that Singapore is struggling to innovate, and that the economy is having a tough time finding new sources of GDP growth. In turn, this has weighed against the Singapore dollar.
Singapore dollar weakens, as Singapore faces labour supply constraints
Furthermore, sterling has also hit this 19-month high of 1.8271 against the Singapore dollar today, because Singapore's labour supply looks set shrink in coming decades. To be specific, according to a new study by Oxford Economics, Singapore's labour supply will fall by -1.7% up to 2026, and -2.5% by a decade later.
This will be the sharpest decline in labour supply among a dozen Asian countries, says Oxford Economics, including traditional laggard Japan. With this in mind, as Singapore's labour supply falls, as people age and fewer immigrants arrive, this is hurting the SG dollar!
Given all this, the pound to Singapore dollar interbank exchange rate has hit this 19-month high today, and could continue to rise! If you intend to transfer money from the UK to Singapore, this is hence of great benefit to you.
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email email@example.com.