Photo of Singapore MBS from AFP

One of the strangest Singaporean ego has taken a beating: the Singapore dollar hit a 7-year-low. As of Tuesday (Dec 20), the Singapore dollar was S$1.4506 against the US dollar, and is likely to worsen in the year to come as expected by a survey conducted by the Monetary Authority of Singapore.

According to financial news reports, the Singapore dollar weakened as US raised federal rates – a move that reduces money supply – prompting fears of lower business investments into Singapore.

The Singapore economy is likely to enter recession should the next quarterly GDP register another negative result. In the Q3 2016 result, Singapore is the only economy in Asia Pacific to register a negative GDP performance. Long-term unemployment rate for residents hit a 14-year-high while unemployment rate hit 3%.

Just today (Dec 22), a survey conducted by Singapore Business Federation revealed that a majority of the 3,600 small and medium enterprises surveyed expressed pessimism for the first half of 2017. Businesses in Singapore like PwC are now using the declining economic performance to call for lower taxes in the country which already has one of the lowest business taxes in the world.