Firms feel benefits of stronger currency

Maintaining momentum: People ride bicycles near the Singapore flyer observation wheel. The stronger local currency will help retailers and real estate developers cushion the impact of expensive US dollar-denominated merchandise and building materials. — AFP

SINGAPORE: Companies here that deal with overseas trade as part of their business have recently been experiencing – or are now beginning to – the impact of a strengthening Singapore dollar.

The effect goes two ways: A stronger local currency tends to make imports cheaper for businesses such as property developers, food and beverage or F&B businesses like supermarkets and restaurants, as well as retailers that purchase materials or products from abroad.