Oral reply to Parliamentary Question on Singapore dollar Malaysia ringgit exchange rate

Date: For Parliament Sitting on 6 March 2026






Name and Constituency of Member of Parliament






Mr Yip Hon Weng, Yio Chu Kang SMC

Question

Mr Yip Hon Weng: To ask the Prime Minister and Minister for Finance (a) what Singapore Dollar–specific factors have contributed to its persistent weakness against the Malaysian Ringgit; (b) what implications a sustained slide below the exchange rate of 3 MYR/SGD may have on Singapore’s labour market; and (c) whether MAS will consider strengthening policy settings or adjusting the exchange rate band to ensure stability.

Answer by Mr Alvin Tan, Minister of State, Ministry of Trade and Industry and Ministry of National Development, and Board member of MAS, on behalf of Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:

1. The Singapore dollar has appreciated against the Malaysian ringgit at an average rate of 1.3% p.a. over 2020 to 2025. 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. The S$ trade-weighted exchange rate has been on a gradual appreciating path since October 2021. The strength and stability of the Singapore dollar is assessed against the attainment of medium-term price stability in the economy.

2. Non-resident labour flows into Singapore principally reflect the economy’s overall growth and employment prospects.

3. MAS will continue to closely monitor economic and financial developments and is in an appropriate position to adjust its monetary policy stance to ensure medium-term price stability.

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