At first glance, Singapore may appear an odd winner from the disruption to global trade brought on by Donald Trump’s “reciprocal” tariff regime. As a major beneficiary of the postwar era of globalisation, the city-state’s entire economy is structured upon being a linchpin for international commerce.
But after a year dominated by trade shocks and geopolitical tension, international investors are flocking to Singapore. The country’s stock market had its best year for a decade in 2025, with a total return of 28.6 per cent, while foreign investors rushed to buy its banks’ bonds, a safety-first asset class favoured primarily by domestic buyers.
The Singapore dollar hit an 11-year high against its US namesake this week, in stark contrast to Japan’s yen and South Korea’s won, which are trading at multi-decade lows.