Singapore Country Risk Ratings

Singapore’s overall risk is unchanged at low. The government remains stable with the People’s Action Party (PAP) having 87 of the 97 seats in parliament. PM Lawrence Wong in July reenergised the cabinet with some young politicians being brought into positions. Though the opposition Workers’ Party hold different views on a number of policy areas, the next election is not due until 2030. Political violence continues to be rated at low. On the international front, Singapore continues to seek to keep good relations with China and the U.S. and avoid being drawn into geopolitics.

Singapore’s GDP growth has been revised up by the government from 2.0-4.0% to 4.5-5.5% after a strong H1 2026. The AI infrastructure boom is providing a noticeable boost to the manufacturing sector and also wholesale trade. This has more than offset a modest adverse effect from higher energy prices on the Iran war. Momentum should continue into 2027 provided that the AI capex wave does not slow. The risk of doing business continues to be assessed as low. In terms of inflation, the IMF forecast a rate of 2.3% in 2026 with a slowdown to 1.9% in 2027, as energy prices have fallen back from the peak. Meanwhile, the healthy external position continues, with the current account surplus projected at 16.6% of GDP in 2026. Additionally, the Singapore dollar (SGD) is expected to continue its strong path into H2 2026. Sovereign non-payment risk and exchange transfer risk remain unchanged at medium-low.