DBS Group Research has released a report titled “Singapore: The Next 15 Years of Quality and Inclusive Growth,” highlighting the nation’s economic trajectory towards 2040. The report anticipates Singapore’s GDP to more than double from $547 b in 2024 to between $1.2t and $1.4t by 2040. This growth is expected to be driven by capital accumulation, human capital, and productivity gains, with services playing a pivotal role.
The report identifies five sectors—trade and connectivity, financial services, energy and climate, real estate, and healthcare/social services—as crucial to enhancing Singapore’s international competitiveness. These sectors are expected to underpin nearly three-quarters of the nominal gross value-added, reinforcing Singapore’s position as a global entrepôt and financial hub.
A significant highlight is the potential strengthening of the Singapore dollar, which could reach parity with the US dollar by 2040. This is attributed to disciplined policy and the currency’s safe-haven appeal. Additionally, the Straits Times Index (STI) is projected to rise significantly, potentially reaching nearly 10,000 by 2040, driven by liquidity reforms and global inflows.
Timothy Wong, Group Head of DBS Group Research, emphasised the importance of resilience and adaptability in navigating future challenges, stating, “The path ahead will demand vigilance, disciplined governance, and agility in balancing growth with sustainability and social resilience.”
As Singapore approaches its 75th year of independence in 2040, the report underscores the nation’s potential for enduring value creation amidst a fast-changing global landscape.
