MONEY MASTER

The SGD is under pressure — and August could bring more headwinds. As the US ramps up  tariff threats  on  pharma and semiconductors  — two of Singapore’s top exports — and with speculation mounting that the  Monetary Authority of Singapore (MAS)  could  ease its currency policy  this month, the SGD may face further downside. Key Takeaways: S GD may slide to S$1.30  vs. USD in the near term Trump’s new tariffs (possibly by  Aug 1 ) could weigh heavily on SG exports June  core inflation data  (out July 23) expected at  only +0.7% , reinforcing easing case MAS may  flatten the S$NEER slope  by 50bps to 0%, capping SGD strength With  S$NEER near the top of the band , flattening = weaker SGD vs trading partners Experts Say: “The tariff uncertainty could add to growth headwinds for Singapore in H2.” —  Moh Siong Sim, Bank of Singapore “We expect MAS to ease policy this month... the bias is for further SGD we...

The White House signaled a significant escalation in trade tensions on Tuesday, with President Donald Trump confirming the likelihood of sweeping tariffs on  pharmaceuticals and semiconductors  — two of the most globalized and strategically sensitive sectors. If enacted, these levies could have sweeping consequences for multinational corporations, global supply chains, and consumer prices in the United States. Trump told reporters that  tariffs on imported drugs could be introduced by the end of July , starting at a low base and ramping up over time to as high as  200% . The move, he claims, is aimed at incentivizing drug manufacturers to  onshore production  and reduce foreign dependency, citing national security under  Section 232 of the Trade Expansion Act . “The pharmaceutical companies will get a year to build in the U.S., then we’ll make it a very high tariff,” Trump said, framing the timeline as a grace period before a more aggressive policy shi...

When former President Donald Trump threatened a  200% tariff on imported pharmaceuticals , the natural expectation was a sell-off in healthcare stocks. Instead? The  NYSE Arca Pharmaceutical Index rose 1% over the past week , outperforming the S&P 500. Why?  Investors are betting the blow will be delayed, softened — or sidestepped entirely.  Trump’s Tariff Threat — But with a Long Runway Trump proposed a  1 to 1.5-year grace period , which could effectively push implementation out to  2027 , with companies possibly stockpiling enough to delay impact until  2028 . According to Jefferies: “If firms stockpile effectively, the earnings hit could be milder than expected — even better than past projections for a 25% tariff.” Pharma Already Taking Action Two key moves are underway: Stockpiling : Hormone treatment imports from Ireland more than  doubled YoY  (US$36 billion YTD). U.S. Manufacturing Shift : Eli Lilly : Announced a  US$27B inve...

Singapore is set to open discussions with the US on  pharmaceutical supply chain issues , as the city-state responds to rising global trade tensions under President Donald Trump's administration. Pharmaceuticals in Focus Deputy Prime Minister Gan Kim Yong  emphasized that pharma supply chains are “very complex and long,” making uninterrupted trade vital. Talks with the US Commerce Department will explore how to  maintain smooth trade flows  between both nations. Trump hinted that  pharma firms could get a one-year grace period  before any proposed  200% tariff  on foreign-made drugs is implemented. Singapore’s pharma industry at a glance: Home to major players like  Pfizer, Amgen, and Merck . Pharmaceuticals account for  over 10% of Singapore’s exports to the US . What About Semiconductors? Once pharma discussions conclude,  semiconductors  are expected to be next on the agenda. Singapore produces  around 10% of the world’...