SGD: Budget support and equity-market push – Commerzbank

💡 DMK Insight

Singapore’s 2026 Budget is a game-changer for SMEs and capital markets, and here’s why that matters right now: The focus on supply-side support and internationalization for small and medium enterprises (SMEs) could lead to increased demand for Singaporean assets, particularly in the forex market. As SMEs expand globally, we might see a boost in the Singapore dollar (SGD) as these businesses seek to hedge against currency fluctuations. The fresh funding for the Equity Market Development Programme signals a commitment to enhancing market liquidity, which could attract both institutional and retail investors. Traders should keep an eye on the SGD’s performance against major currencies, especially the USD, as these initiatives roll out. However, there’s a flip side. If the funding doesn’t translate into tangible growth or if global economic conditions worsen, we could see a backlash in the form of reduced investor confidence. Watch for key economic indicators from Singapore in the coming months, particularly GDP growth and export figures, as they will provide insight into the effectiveness of these budget measures. The immediate impact could be felt in the forex market, so monitoring SGD/USD levels will be crucial for positioning trades effectively.