NATIONAL ECONOMICS UNIVERSITY

ADVANCED EDUCATIONAL PROGRAMS

GROUP EXERCISES

SUBJECT: INTERNATIONAL FINANCE

GROUP 8
CLASS: 64D CORPORATE FINANCE EEP

STT NAME STUDENT ID

1 Nguyễn Cao Khánh Hà 11221914
2 Nguyễn Vũ Chi Lan 11223272
3 Nguyễn Khánh Linh 11223569
4 Nguyễn Phương Linh 11223631
5 Hoàng Đức Mạnh 11224115
6 Đỗ Minh Ngọc 11224656
 Table of contents
I. Evaluate the evolution of Singapore’s exchange rate against USD, JPY, CNY
from 2008 – 2022 ....................................................................................................... 1
1. SGD/USD .................................................................................................... 1
2. SGD/JPY ..................................................................................................... 3
3. SGD/CNY ................................................................................................... 4
II. Calculate REER of Singapore ......................................................................... 5
1. Formula ...................................................................................................... 5
2. Calculate Singapore’s REER ..................................................................... 6
III. Assess the movement of Singapore’s REER with its competitiveness ....... 14
REFERENCES ....................................................................................................... 17
 COUNTRY: SINGAPORE

I. Evaluate the evolution of Singapore’s exchange rate against USD, JPY,

CNY from 2008 – 2022
Table 1.1. Singapore’s exchange rate against
USD, JPY, CNY from 2008 – 2022

2008 2009 2010 2011 2012 2013 2014 2015

SGD/ 0.7067 0.6872 0.7331 0.7949 0.8 0.7993 0.7892 0.7272

USD

SGD/J 73.2155 64.3298 64.3695 63.434 63.84 78.0175 83.5832 88

PY

SGD/ 4.8297 4.8681 5.2562 4.9654 5.1552 4.9011 4.6479 4.4059

CNY

2016 2017 2018 2019 2020 2021 2022

SGD/USD 0.7235 0.7241 0.7412 0.7331 0.7246 0.7446 0.7251

SGD/JPY 78.7264 81.2454 81.8383 79.912 77.3913 81.7572 95.3589

SGD/CNY 4.8046 4.895 4.9073 5.0659 5 4.8026 4.8875

1. SGD/USD
Figure 1.1. Singapore’s exchange rate against USD from 2008 – 2022

- In general, the exchange rate of the Singaporean currency compared to the

US dollar has very significant fluctuations. The highest level was reached
1
 at 0.8 in 2012 while the lowest level was at 0.6872 in 2009 (an increase of
approximately 16%).
- During the period from 2008 to 1010, it witnessed a volatile rise and fall
from 0.7067 to 0.6872 and then increased to 0.7331. When the SGD/USD
exchange rate decreases, Singapore's exported goods are now priced higher
than similar products on the international market, which reduces the
competitiveness of the goods. On the contrary, imported goods will be
cheaper, meaning the domestic currency will increase, thereby causing the
country's inflation rate to be controlled at a moderate level. However, after
that, the increase in SGD/USD made imported goods more expensive,
increasing the inflation rate. At the same time, exported goods also become
more competitive due to lower prices in the international market.
- Next is the period 2011 - 2014, during this 4-year period, Singapore
recorded a higher exchange rate of 0.7 and reached the highest level in the
past 16 years of 0.8 (an increase of approximately 9% over the past 16
years). with the end of the previous period). This period witnessed an
increase in exported goods and services with reduced selling prices while
imports decreased compared to previous years when selling prices
increased, thereby creating conditions for increased competition with other
countries. other countries on the market. In addition, rising exchange rates
also cause higher lending interest rates, thereby devaluing the domestic
currency.
- Finally, in the period from 2015 to 2022, although the exchange rate has
decreased significantly, Singapore still maintains stability when the
exchange rate is always maintained at 0.72 to 0.74. The highest level
achieved by Singapore during this period was 0.7446 in 2021. A steady
growth trend can be seen in Singapore's imports to the US during this
period. Singapore can continue to import technology products, medical
equipment and consumer goods from the US to meet domestic market
demand and consumption trends. In addition, the falling exchange rate also
contributes to reducing the risk of inflation, but Singapore lacks
competition in foreign markets due to a sharp decline in exports.

2
2. SGD/JPY
Figure 1.2. Singapore’s exchange rate against JPY from 2008 – 2022

- In general, the exchange rate sgd/jpy always has a stable and insignificant
increase or decrease over the years. with the highest rate belonging to 2022
with 95.3589 while the lowest rate belongs to 2011 with 63.434.
- From 2008 to 2012, witnessed a decline in the exchange rate sgd/jpy from
73.2155 to 64.3298, 64.3695, 63.434, 63.84 respectively in 2009, 2010,
2011, 2012, recording a decline of more than 13% during the period. this
paragraph. In 2008, Exports from Singapore to Japan encountered
difficulties due to the slowdown in the global economy amid the financial
crisis. Singapore's key industries such as electronics and financial services
may have been affected. By 2009, exports continued to decline sharply due
to the global economic downturn and reduced consumer and investment
demand from Japan. By 2010, under the recovery of the global economy,
exports may have begun to increase again, although still lagging behind
pre-crisis levels. From 2011 to 2012, Exports from Singapore to Japan may
continue to grow slightly or remain stable, reflecting the stability of the
global economy and diligence in market expansion. Meanwhile, imports
from Japan to Singapore may have remained stable or decreased slightly,
reflecting the slowdown in the global economy and spending cuts on
Singapore's part.
- In the next period from 2013 to 2022, the exchange rate of Singapore and
Japan will grow and maintain stability, there will even be years of strong
and positive growth, typically 2015 or 2022. Exports from Singapore to
Japan may have recorded stable or higher growth in the early years of this
period. Singapore's key industries such as electronics, financial services
3
 and logistics may have found export opportunities to Japan. However, the
development of exports may face some challenges due to the impact of the
COVID-19 pandemic, as the epidemic wave and movement restrictions
affect business and trade activities. However, economic recovery efforts
may have supported the recovery of exports after the pandemic. Besides,
Imports from Japan to Singapore may have remained stable or grown
slightly, reflecting Singapore's demand for technology products, medical
equipment and consumer goods from Japan. Under the impact of the
COVID-19 pandemic, imports from Japan to Singapore may face some
challenges due to supply chain disruptions and restrictions in business
activities. However, with the economic recovery, it is possible to see a
growth in imports from Japan

3. SGD/CNY
Figure 1.3. Singapore’s exchange rate against CNY from 2008 – 2022

- In general, the sgd/cny exchange rate fluctuates up and down. The highest
exchange rate was 5.2562 in 2010 while the lowest was 4.4059 in 2015
(nearly 20% difference).
- From 2008 - 2011, the exchange rate increased steadily and strongly in the
first 3 years from 4.8297 to 5.2562 - the highest in the past 16 years.
However, it suddenly dropped the following year (to 4.9654). By 2012, this
figure skyrocketed to 5.1552 before decreasing gradually to 4.9011,
4.6479, 4.4059 - the lowest in the last 16 years. However, by 2016, the
exchange rate between these two countries had a significant growth - up
10% compared to the previous year. and from then until 2022, the exchange
rate of these two countries witnessed a stable increase and maintained a
4
 good enough level, even reaching a level of more than 5 in 2019 and 2020.
Exports from Singapore to China may have encountered difficulties due to
the slowdown in the global economy amid the financial crisis. Some of
Singapore's key industries such as electronics and financial services may
have been affected. Under the recovery of the global economy, exports
from Singapore to China may have started to increase again, although still
lagging behind pre-crisis levels. Meanwhile, imports from China to
Singapore may have remained stable or grown slightly, reflecting
Singapore's demand for technology products, consumer goods and other
goods from China.

II. Calculate REER of Singapore

1. Formula
𝑒 𝑃
- ∏𝑛𝑖=1 = ( × )𝑤𝑖
𝑒𝑖 𝑃𝑖

where,

 n = the number of countries in the basket

 i = the ‘i’th currency in the basket
 e is the exchange rate of the Singapore dollar (SGD) against US dollar
(USD) in indexed form
 ei is the exchange rate of foreign currency ‘i’ against the US dollar (USD)
in indexed form
 wi is the weight attached to the foreign currency ‘i’
 Pi is the consumer price index of the country associated with the foreign
currency ‘i’
 P is Singapore’s consumer price index (CPI) (Singapore uses the CPI to
adjust REER)

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 2. Calculate Singapore’s REER
Table 2.1. REER of Singapore in 2008

2008
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1438 101.04 31,125 33,711 64,836 0.1374 1.2536
2.Malaysia 0.2994 105.39 40,912 38,140 79,052 0.1675 1.1569
3.Indonesia 0.0001031 72.908 35,747 17,593 53,340 0.113 2.8338
4.Taipei 0.03174 103.57 9,511 16,468 25,979 0.055 1.1882
5.Japan 0.009671 101.36 16,710 25,942 42,652 0.0904 1.4807
6.Korea 0.000909 104.74 12,291 18,009 30,300 0.0642 1.5351
7.Thailand 0.03002 105.5 13,193 11,393 24,586 0.0521 1.1795
8.Viet Nam 0.00006134 113.57 8,744 2,431 11,175 0.0236 1.2461
9.Hong
0.1284 104.35 35,098 3,651 38,749 0.0821 1.1523
Kong
10.France 1.47 102.81 4,738 7,896 12,634 0.0267 0.9815
11.UAE 0.272 112.25 4,166 6,309 10,475 0.022 1.0202
12.Germany 1.47 102.63 6,651 9,244 15,895 0.0336 0.9768
13.USA 1 103.86 24,196 37,853 62,049 0.1315 0.9585
Total 471,721 17.6324

Table 2.2. REER of Singapore in 2009

2009
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1464 93.76 26,357 25,964 52,321 0.1404 1.2548
2.Malaysia 0.284 100.61 30,971 28,554 59,525 0.1597 1.1514
3.Indonesia 0.00009624 104.82 26,121 14,258 40,379 0.1083 2.6045
4.Taipei 0.0303 99.11 8,720 12,841 21,561 0.0578 1.1989
5.Japan 0.01068 98.6 12,305 18,758 31,063 0.0833 1.4173
6.Korea 0.0007829 102.69 12,570 14,061 26,631 0.0714 1.6208
7.Thailand 0.02916 99.18 10,094 8,229 18,323 0.0491 1.1689
8.Viet Nam 0.0000586 86.91 6,990 2,318 9,308 0.0249 1.2683
9.Hong
0.1289 100.55 31,253 2,873 34,126 0.0916 1.1656
Kong
10.France 1.39 100.09 3,928 8,375 12,303 0.033 0.9771
11.UAE 0.272 101.562 3,720 4,263 7,983 0.0214 1.0198
12.Germany 1.39 100.31 4,184 7,884 12,068 0.0323 0.9775

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13.USA 1 99.64 17,746 29,217 46,963 0.126 0.9549
Total 372,553 16.6645

Table 2.3. REER of Singapore in 2010

2010
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1477 104.36 36,496 33,666 70,162 0.147 1.2627
2.Malaysia 0.3105 101.72 41,913 36,358 78,271 0.164 1.1532
3.Indonesia 0.00011 105.12 33,091 16,839 49,930 0.1046 2.5064
4.Taipei 0.0316 100.89 12,820 18,518 31,338 0.0656 1.2307
5.Japan 0.0113 99.26 16,412 24,454 40,866 0.0856 1.4328
6.Korea 0.0008646 102.97 14,398 18,030 32,428 0.0679 1.581
7.Thailand 0.03155 103.27 12,702 10,281 22,983 0.0481 1.1633
8.Viet Nam 0.00005372 102.15 7,387 1,610 8,997 0.0188 1.1967
9.Hong
0.1287 102.35 41,326 3,421 44,747 0.0937 1.1776
Kong
10.France 1.33 101.53 6,040 7,565 13,605 0.0285 0.9835
11.UAE 0.272 100.88 3,831 6,371 10,202 0.0213 1.0218
12.Germany 1.33 101.10 6,150 8,904 15,054 0.0315 0.9819
13.USA 1 101.64 23,005 35,633 58,638 0.1228 0.9639
Total 477,222 15.8711

Table 2.4. REER of Singapore in 2011

2011
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1547 102.03 42,764 38,020 80,784 0.1477 1.279
2.Malaysia 0.3267 103.2 50,019 39,131 89,150 0.163 1.1594
3.Indonesia 0.000114 105.37 42,832 19,300 62,132 0.1136 2.7325
4.Taipei 0.03389 101.44 14,599 21,733 36,332 0.0664 1.2361
5.Japan 0.0125 99.78 18,432 26,235 44,667 0.0816 1.4098
6.Korea 0.0009023 104.05 15,482 21,769 37,251 0.0681 1.58825
7.Thailand 0.0327 103.85 14,100 11,393 25,493 0.0466 1.1608
8.Viet Nam 0.00004875 108.6 10,231 1,658 11,889 0.0217 1.2338
9.Hong
0.1284 105.27 45,156 3,279 48,435 0.0885 1.175
Kong
10.France 1.39 102.11 6,767 8,546 15,313 0.028 0.9852

7
11.UAE 0.272 100.88 4,758 11,634 16,392 0.0299 1.0339
12.Germany 1.39 102.08 6,689 10,417 17,106 0.0312 0.9835
13.USA 1 103.15 22,362 39,536 61,898 0.1131 0.9764
Total 546,842 18.4718

Table 2.5. REER of Singapore in 2012

2012
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1584 97.34 44,071 39,192 83,263 0.1479 1.2841
2.Malaysia 0.3236 101.64 50,432 40,418 90,850 0.1614 1.1626
3.Indonesia 0.0001065 104.23 43,332 20,193 63,525 0.1128 2.7391
4.Taipei 0.0337 101.97 14,447 25,309 39,756 0.0706 1.2527
5.Japan 0.0125 99.89 18,826 23,639 42,465 0.0754 1.3730
6.Korea 0.000887 102.11 16,579 25,665 42,244 0.075 1.6694
7.Thailand 0.0321 102.94 15,622 10,137 25,759 0.0457 1.1592

8.Viet Nam
0.00004801 92.07 10,383 3,146 13,529 0.024 1.2671
9.Hong
Kong 0.1289 104.107 44,775 2,245 47,020 0.0835 1.1651
10.France 1.29 101.95 6,831 9,105 15,936 0.0283 0.9872
11.UAE 0.272 100.66 4,733 15,667 20,400 0.0362 1.0413
12.Germany 1.29 102.01 5,955 10,570 16,525 0.0293 0.9867
13.USA 1 102.06 22,709 38,818 61,527 0.1093 0.9784
Total 562,798 19.953

Table 2.6. REER of Singapore in 2013

2013
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1612 100 48,537 43,685 92,222 0.1619 1.3008
2.Malaysia 0.3174 102.1 50,107 40,833 90,940 0.1597 1.1593
3.Indonesia 0.0000955 107 40,711 19,209 59,920 0.1052 2.5748
4.Taipei 0.0335 100.75 15,342 28,992 44,334 0.0778 1.2815
5.Japan 0.0102 100.32 17,674 20,389 38,063 0.0668 1.3399
6.Korea 0.0009132 101.31 16,772 24,045 40,817 0.0716 1.6264
7.Thailand 0.0325 102.22 15,303 9,304 24,607 0.043 1.1484
8.Viet Nam 0.00004777 97.62 10,889 3,057 13,946 0.0244 1.2704
8
9.Hong
0.1289 104.32 46,168 3,584 49,752 0.0873 1.1708
Kong
10.France 1.33 100.86 4,825 8,099 12,924 0.0226 0.9888
11.UAE 0.272 101.1 5,662 16,539 22,201 0.0389 1.0434
12.Germany 1.33 101.5 5,841 10,869 16,710 0.0293 0.9854
13.USA 1 101.46 24,063 38,872 62,935 0.1105 0.9764
Total 569,371 18.3945

Table 2.7. REER of Singapore in 2014

2014
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1628 99.42 51,471 44,374 95,845 0.1701 1.3115
2.Malaysia 0.3058 103.17 49,041 39,041 88,082 0.1563 1.1559
3.Indonesia 0.00008428 79.61 38,560 18,789 57,349 0.1017 2.5986
4.Taipei 0.0328 101.17 16,150 30,050 46,200 0.0819 1.2977
5.Japan 0.00944 102.85 16,753 20,106 36,859 0.0654 1.3342
6.Korea 0.0009498 101.29 16,703 21,601 38,304 0.0679 1.579
7.Thailand 0.0307 101.87 15,048 8,771 23,819 0.0422 1.1466
8.Viet Nam 0.0000472 97.65 12,991 3,200 16,191 0.0287 1.3236
9.Hong
45,087 3,489 48,576
Kong 0.1289 104.37 0.0862 1.1657
10.France 1.33 100.51 4,491 8,108 12,599 0.0223 0.9885
11.UAE 0.272 102.35 5,388 15,396 20,784 0.0368 1.0395
12.Germany 1.33 100.91 6,071 10,643 16,714 0.0296 0.9846
13.USA 1 101.62 24,247 37,876 62,124 0.1102 0.9735
Total 563,446 18.775

Table 2.8. REER of Singapore in 2015

2015
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1605 99.41 48,254 42,191 90,445 0.185 1.3203
2.Malaysia 0.2557 102.08 37,841 33,143 70,984 0.1452 1.1578
3.Indonesia 0.00007468 106.36 28,906 14,377 43,283 0.0885 2.2399
4.Taipei 0.0313 99.68 14,449 24,670 39,119 0.08 1.2849
5.Japan 0.008264 100.72 15,281 18,589 33,870 0.0692 1.3616
6.Korea 0.0008841 100.74 14,510 18,193 32,703 0.0669 1.5645

9
7.Thailand 0.0291 99.08 13,807 8,029 21,836 0.0446 1.1541
8.Viet Nam 0.00004608 96.64 12,667 3,597 16,264 0.0332 1.3802
9.Hong
0.1289 103.06 40,337 3,680 44,017 0.09 1.1637
Kong
10.France 1.1105 100.04 3,379 7,306 10,685 0.0218 0.9904
11.UAE 0.272 104.07 5,427 8,173 13,600 0.0278 1.0261
12.Germany 1.1105 100.51 5,548 8,950 14,498 0.0296 0.9869
13.USA 1 100.11 24,115 33,371 57,486 0.1176 0.9614
Total 488,790 16.7597

Table 2.9. REER of Singapore in 2016

2016
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1506 100.59 42,249 40,229 82,478 0.1601 1.2831
2.Malaysia 0.2409 102.13 34,701 32,122 66,823 0.1297 1.1491
3.Indonesia 0.0000751 103.57 25,855 13,478 39,333 0.0763 2.0083
4.Taipei 0.0309 101.48 14,880 23,184 38,064 0.0739 1.2602
5.Japan 0.0091 99.9 14,922 19,638 34,560 0.0671 1.3398
6.Korea 0.0008614 100.95 14,418 17,220 31,638 0.0614 1.5107
7.Thailand 0.02832 100.21 12,919 7,210 20,129 0.039 1.1346
8.Viet Nam 0.00004558 102.09 11,322 3,002 14,324 0.0278 1.3076
9.Hong
0.1288 102.42 41,355 3,218 44,573 0.0865 1.1579
Kong
10.France 1.1069 100.18 3,297 8,434 11,731 0.0227 0.9901
11.UAE 0.272 101.62 4,078 6,853 10,931 0.0212 1.0204
12.Germany 1.1069 100.5 5,734 8,628 67,409 0.1308 0.9444
13.USA 1 101.26 22,589 30,458 53,047 0.1029 0.9652
Total 515,040 11.9554

Table 2.10. REER of Singapore in 2017

2017
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1479 99.61 53,871 49,666 103,537 0.1946 1.3649
2.Malaysia 0.2325 103.73 39,604 42,821 82,425 0.1549 1.1868
3.Indonesia 0.00007473 103.77 21,373 14,237 35,610 0.0669 1.8450
4.Taipei 0.0328 100.63 16,473 31,400 47,873 0.09 1.3208

10
5.Japan 0.008912 100.51 17,150 22,264 39,414 0.0741 1.3853
6.Korea 0.000884 101.88 16,776 14,199 30,975 0.0582 1.4769
7.Thailand 0.0294 100.72 14,725 7,171 21,896 0.0411 1.1408
8.Viet Nam 0.0000447 100.78 12,367 3,358 15,725 0.0295 1.3318
9.Hong
Kong 0.1283 101.5 46,013 4,438 50,451 0.0948 1.1773
10.France 1.1301 101.03 3,727 11,410 15,137 0.0284 0.9872
11.UAE 0.272 101.97 3,670 9,775 13,445 0.0252 1.0247
12.Germany 1.1301 101.51 6,195 10,140 16,335 0.0307 0.9861
13.USA 1 102.13 24,254 34,737 58,991 0.1109 0.9632
Total 531,814 13.8867

Table 2.11. REER of Singapore in 2018

2018
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.15106 100.49 50,619 49,666 100,285 0.1763 1.3234
2.Malaysia 0.2475 101 44,895 42,821 87,716 0.1542 1.1831
3.Indonesia 0.0000702 103.2 33,018 15,279 48,297 0.0849 2.1908
4.Taipei 0.0331 101.3 16,991 31,400 48,391 0.085 1.3016
5.Japan 0.009058 101.01 20,036 22,264 42,300 0.0743 1.3869
6.Korea 0.0009089 101.5 15,681 14,199 29,880 0.0525 1.4212
7.Thailand 0.0309 101 15,561 8,291 23,852 0.0419 1.1421
8.Viet Nam 0.0000442 100 12,059 3,466 15,525 0.0272 1.3042
9.Hong
0.1275 102.3 48,633 3,638 52,271 0.0918 1.1734
Kong
10.France 1.1793 101.8 4,844 11,410 16,254 0.0285 0.9864
11.UAE 0.272 103.06 3,712 9,775 13,487 0.0237 1.0234
12.Germany 1.1793 101.7 6,415 10,140 16,555 0.0291 0.9861
13.USA 1 102.44 31,890 42,120 74,010 0.1302 0.9591
Total 568,823 14.6927

Table 2.12. REER of Singapore in 2019

2019
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1447 100.7 51,663 49,086 100,749 0.188 1.3564
2.Malaysia 0.2415 100.6 41,196 41,718 82,914 0.1547 1.1873

11
3.Indonesia 0.0000707 76.9 27,376 15,626 43,002 0.0802 2.1459
4.Taipei 0.0323 100.5 16,397 32,355 48,752 0.0909 1.3283
5.Japan 0.00917 100.4 17,652 19,43 17,652 0.0329 1.1553
6.Korea 0.0008581 100.4 15,214 13,746 28,960 0.054 1.4403
7.Thailand 0.0322 100.7 15,371 7,656 23,027 0.0429 1.14367
8.Viet Nam 0.0000434 99.3 12,999 3,646 16,645 0.031 1.3536
9.Hong
0.1276 102.9 44,474 3,491 47,965 0.0895 1.1670
Kong
10.France 1.1201 101.47 4,410 12,126 16,536 0.0308 0.9867
11.UAE 0.272 98.1 4,057 11,519 15,576 0.029 1.0299
12.Germany 1.1201 101.4 5,844 9,916 15,760 0.0294 0.9873
13.USA 1 101.81 34,411 43,919 78,330 0.1461 0.9539
Total 535,868 13.2129

Table 2.13. REER of Singapore in 2020

2020
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1449 99.6 41,290 37,802 79,092 0.1835 1.344
2.Malaysia 0.238 99.8 26,454 33,448 59,902 0.13903 1.1672
3.Indonesia 0.0000685 102.4 16,988 10,921 27,909 0.0647 1.8193
4.Taipei 0.0337 99.7 14,572 29,091 43,663 0.1013 1.3643
5.Japan 0.009363 100 13,931 14,386 28,317 0.0657 1.3306
6.Korea 0.0008472 100.5 13,188 12,387 25,575 0.0593 1.4922
7.Thailand 0.0319 99.2 11,168 9,779 20,947 0.0486 1.1641
8.Viet Nam 0.00004309 100.38 9,880 4,010 13,890 0.0322 1.3681
9.Hong
0.1298 100.3 35,490 3,786 39,276 0.0911 1.1690
Kong
10.France 1.1382 100.48 4,196 8,344 12,540 0.0291 0.9867
11.UAE 0.272 97.9 3,051 4,829 7,880 0.0182 1.0184
12.Germany 1.1382 100.2 5,553 6,965 12,518 0.029 0.9868
13.USA 1 101.23 31,640 27,685 59,325 0.1376 0.9546
Total 430,834 13.6304

Table 2.14. REER of Singapore in 2021

2021
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD

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1.China 0.155 98.4 67,747 54,611 122,358 0.1864 1.3494
2.Malaysia 0.2415 102.49 42,130 53,729 95,859 0.146 1.1782
3.Indonesia 0.0000699 101.52 28,801 15,213 44,014 0.067 1.8634
4.Taipei 0.0357 101.93 22,761 51,097 73,858 0.1125 1.4079
5.Japan 0.0091 99.8 18,355 21,804 40,159 0.0611 1.3112
6.Korea 0.0008741 102.5 19,700 22,195 41,895 0.0638 1.5381
7.Thailand 0.0312 101.21 15,622 9,805 25,427 0.0387 1.1311
8.Viet Nam 0.0000432 98.64 15,671 4,383 20,054 0.0305 1.3487
9.Hong
Kong 0.1286 101.5 60,147 3,248 63,395 0.0965 1.1856
10.France 1.1828 101.6 3,869 11,522 15,391 0.0234 0.9893
11.UAE 0.272 99.9 4,018 12,547 16,565 0.0252 1.0263
12.Germany 1.1828 103 7,105 10,293 17,398 0.0265 0.9876
13.USA 1 104.69 39,317 40,573 79,890 0.1217 0.9619
Total 656,263 14.6797

Table 2.15. REER of Singapore in 2022

2022
Exchange Trade
Country rate with Inflation Weight REER
Exports Imports Total
USD
1.China 0.1474 101.09 64,113 62,934 127,047 0.17229 1.3264
2.Malaysia 0.2272 103.3 51,550 59,377 110,927 0.15043 1.1952
3.Indonesia 0.0000673 104.22 37,310 18,152 55,462 0.07521 2.0129
4.Taipei 0.0335 103 25,254 57,572 82,826 0.1123 1.4167
5.Japan 0.0076 102.5 20,812 26,726 47,538 0.0644 1.3444
6.Korea 0.000774 105.07 20,931 30,652 51,583 0.0699 1.6147
7.Thailand 0.0285 106.07 17,581 11,000 28,581 0.03875 1.1335
8.Viet Nam 0.000043 101.2 17,223 4,970 22,193 0.03009 1.3422
9.Hong
Kong 0.1276 101.8 58,056 3,100 61,156 0.0829 1.15878
10.France 1.0535 105.2 2,460 12,981 15,441 0.02094 0.9923
11.UAE 0.272 104.8 4,600 15,713 20,313 0.02754 1.0276
12.Germany 1.0535 106.8 7,030 9,979 17,009 0.02306 0.9912
13.USA 1 108.002 45,591 51,721 97,312 0.1319 0.956
Total 737,388 16.7287

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III. Assess the movement of Singapore’s REER with its competitiveness

Table 3.1 REER of Singapore from 2008 to 2022

2008 2009 2010 2011 2012 2013 2014

REER of
17.6324 16.6645 15.8711 18.4718 19.953 18.3945 18.775
Singapore

2015 2016 2017 2018 2019 2020 2021 2022

REER of
16.7597 11.9554 13.8867 14.6927 13.2129 13.6304 14.6797 16.7287
Singapore

 Switch to real effective exchange rate index with 2008 as the base year
(2008=100)
Table 3.2 REER of Singapore index with 2008 as the base year
(2008=100) from 2008 to 2022

2008 2009 2010 2011 2012 2013 2014

REER of
100 94.51 90.011 104.76 113.16 104.32 106.48
Singapore

2015 2016 2017 2018 2019 2020 2021 2022

REER of
95.05 67.8 78.75 83.32 74.93 72.3 83.25 94.87
Singapore

Figure 3.1. REER of Singapore index with 2008 as the base year
(2008=100) from 2008 to 2022

REER of Singapore
120
100
80
60
40
20
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

14
- First, in the period from 2008 to 2010, Singapore's REER index decreased
to 90,011 (nearly 10% compared to the base year). This suggests that
Singapore's exports are becoming cheaper and its imports are becoming
more expensive. From there, it can be seen that the country's currency has
become weaker compared to other countries in the international market, so
Singapore has opportunities and favorable conditions to increase export
competition. On the other hand, when REER decreases, the value of the
Singapore dollar increases, its currency value increases relative to other
national currencies. This reduces import opportunities for those countries,
makes imported goods more expensive and can affect domestic inflation.
In short, during this period, Singapore's competitiveness increased
significantly.
- Next, in the period from 2010 - 2012, it is easy to see that Singapore's
REER increased, even reaching the highest level of 113.16 in 2012 (an
increase of 13% compared to the base year) in the past 15 years. According
to subjective opinion, this is an unfavorable signal for this country. When
REER increases, this is one of the factors that causes export competition to
decrease sharply, because Singapore's cash flow becomes stronger,
increasing the cost of that country's export products in the international
market, and causing a loss of competitive advantage. On the contrary, an
increase in REER increases the opportunity for import competition,
because imported products are cheaper, helping to reduce production costs
and increase the competitiveness of domestic products. In short, rising
REER contributes to Singapore's loss of trade competitiveness.
- In the period 2012 - 2016, through the government's economic and
international policies, Singapore's REER decreased step by step, from
113.16 to 104.32, 106.48, 95.05, 67.8 in 2013, 2014, 2015, 2016, one by
one. This is a positive signal for this country's international trade
competition. Similar to the period 2008-2010, this is also the time when
export competitiveness increased strongly, and import opportunities
decreased, especially in 2016. However, a decrease in REER can also cause
increase inflationary pressure and create side effects for the economy.
- Finally, the period from 2016 - 2022, this is the period when the REER
index increases and decreases, fluctuating regularly. For example, it
15
increased until 2018 (up 15% compared to 2016) but then went down until
2020 (down 11% compared to 2018) and suddenly increased until 2022 at
94.87. In general, as REER increases, Singapore becomes less competitive
(from 2016-2018 and 2020-2022), as its goods and services become more
expensive. Conversely, when REER decreases, Singapore will have its
economy become more competitive (from 2018-2020), as its goods and
services become cheaper compared to other countries.

16
 REFERENCES
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https://data.worldbank.org/

3. World Integrated Trade Solution. (2024). Retrieved from wits.worldbank.org:

https://wits.worldbank.org/

4. World Integrated Trade Solution. (2024). Retrieved from wits.worldbank.org:

https://wits.worldbank.org/

5. COINNEWS MEDIA GROUP LLC. (20204). US Inflation Caltulator.

Retrieved from usinflationcalculator.com:
https://www.usinflationcalculator.com/

6. Interactive Brokers, LLC. (2004). IBKR Campus . Retrieved from

ibkrcampus.com: https://ibkrcampus.com/

7. MBH Media, Inc. (2024). Trusted Currency Converter For Accurate Exchange
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8. INTERNATIONAL MONETARY FUND. (2024). Retrieved from imf.org:

https://www.imf.org/en/Home

9. MBH Media, Inc. (2024). Trusted Currency Converter For Accurate Exchange
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