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Published : 22 Oct 2025, 01:43 PM
DBS Group Research on Wednesday said it expects Singapore's gross domestic product to double by 2040, with the state's benchmark Straits Times Index nearing 10,000 and the Singapore dollar reaching parity with the US dollar.
In a report, the research arm of Singapore's largest bank, DBS, said annual real GDP growth is likely to average 2.3 percent over the next 15 years, outpacing other advanced economies.
In the foreword to the report, Timothy Wong, group head at DBS Group Research, said Singapore's long-term outlook remains constructive despite heightened global uncertainty.
The researcher said GDP would more than double to $1.2 trillion to $1.4 trillion by 2040 from $547 billion in 2024.
It said disciplined policy, safe-haven capital inflow, steady productivity gain and a sustained current account surplus could drive long-term currency appreciation.
It also noted the Straits Times Index breaking a 17-year stalemate, surpassing 4,000 in 2025, which it said marked a medium-term bullish shift.
Singapore is strengthening capital markets through the Monetary Authority of Singapore's S$5 billion ($3.86 billion) equity market development programme, aimed at revitalising the market and boosting liquidity in small- and mid-cap stocks.
Speaking at a DBS event on Wednesday, National Development Minister Chee Hong Tat said Singapore will "stay open, stay connected, and stay competitive" to remain a trusted hub for global capital.
He also said the Association of Southeast Asian Nations is on track to become the fourth-largest economy by 2030, from fifth now, and that Singapore's financial sector grew 6.8 percent last year, with assets under management topping S$6 trillion.
Chee, who is also MAS deputy chairman, said the de facto central bank is working to deepen market liquidity through the equity market development programme and other initiatives to enhance investor engagement.
DBS Group CEO Tan Su Shan at the event said Singapore must safeguard its stability and trusted ecosystem while embracing innovation, and that the equity market development programme is a helpful step.
