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The Singapore dollar (SGD) recently hit its record high of $1 to RM3.50. It has trounced many Asian currencies such as the Japanese yen and Chinese renminbi, and is also holding its own against stronger currencies like the US dollar and the euro. While Singaporeans get to enjoy a cheaper holiday due to a better exchange rate, having a strong SGD might be a curse in disguise. The Monetary Authority of Singapore (MAS) tightens monetary policy by strengthening the SGD to fight against inflation. While this does lower import costs for businesses, it may take time for changes to be made to the price charged to consumers. A strong SGD is one reason for the drop in exports as they become too expensive for foreigners. Key exports declined for the 12th straight month in September. While a tiny city-state like Singapore might not be seen as a major exporting country, the Republic was ranked among the top 10 in total exports in 2022. This is because exports are measured in dollar value instead of quantity, and Singapore relies on the exporting of high value-added products. The decline in exports can lead to a cutback on production from Singapore businesses due to fewer orders being received. Local factories might be downsized as businesses hire fewer workers, which can lead to higher cyclical unemployment. An increase in cyclical unemployment can further decrease consumer spending, and this downward spiral of low production and spending can hit growth further. Perhaps MAS might want to consider weakening the SGD to improve Singapore’s export rate.