Stable Sing$ a 'strong option' for Asian investors amid global uncertainties

The Singdollar could play a significant role in currency diversification amid heightened global uncertainties, particularly for Asian investors, a Bank of Singapore senior executive said.

- Sheila Chiang

Global chief investment officer Jean Chia said at a mid-year outlook briefing on July 9 that Asian clients with home currencies such as Thai baht, Malaysian ringgit or Indonesian rupiah would have most of their offshore or overseas assets denominated in US dollars. "That means that you are also very vulnerable on both ends to either the home currency or US dollar."

Noting that the Singdollar is stable and managed against a basket of currencies of Singapore's major trading partners, she added: "The Singdollar could be the third currency in many of your currency diversification discussions."

She also named gold and alternatives as asset classes investors could diversify to in the face of market volatilities from US tariffs and global slowdown fears. The price of gold is up more than 20 per cent so far in 2025, she noted.