During a discussion at the Asia Future Forward Conference, Prime Minister Lawrence Wong addressed the idea of devaluing the Singapore dollar to improve business competitiveness. He firmly stated that Singapore should leverage its economic strengths instead of resorting to currency depreciation.
Wong noted that a strong and stable currency is essential for managing imported inflation, which is particularly relevant given Singapore's reliance on international trade. The Monetary Authority of Singapore (MAS) manages the currency against a basket of trading partner currencies, allowing it to fluctuate within a policy band.
Wong acknowledged the challenges posed by a stronger dollar, which can increase costs for exporters, but he argued that competing solely on price is not sustainable. Instead, he advocated for a strategy focused on enhancing capabilities, stability, and predictability, which are more attractive to businesses than merely lower costs.
Wong's remarks underscore Singapore's commitment to maintaining its reputation as a safe haven for capital while fostering a competitive business environment through value creation rather than cost-cutting