Singapore might be one of the most expensive cities in the world, but for many expats, the hidden cost isn’t just rent or coffee; it’s the slow erosion of your purchasing power. Inflation is a quiet thief. If you’re earning, saving, or investing in Singapore, you need a strategy that works now and in the future.

This guide will show you how to inflation-proof your portfolio without taking unnecessary risks, and without ignoring the fact that, as an expat, your financial life may span multiple currencies and countries.

1. Understand How Inflation Hits Expats in Singapore

For locals, inflation is mostly about cost of living. For expats, it’s a triple hit:

• Local inflation — price rises in SGD for housing, food, and services.
• Imported inflation — the cost of goods from abroad.
• Currency erosion — if your savings or income are tied to a weakening home currency.

Example: If you’re paid in SGD but plan to retire in GBP, you have to watch both Singapore’s inflation rate and the SGD-GBP exchange rate.


2. Diversify Across Asset Classes

No single investment will protect you perfectly, but a balanced mix can give you resilience.

• Equities: High-quality companies with pricing power can pass costs to customers.
• Bonds: Shorter-duration bonds protect better in rising-rate environments; inflation-linked bonds adjust payouts in line with inflation.
• Real Assets: Property (physical or REITs) and commodities can hedge against rising prices.
• Alternative Investments: Infrastructure funds or private equity (if suitable for your profile).



3. Use Currency Hedging Wisely

Many expats ignore currency risk until it bites. Consider:
• Hedged share classes of global funds.
• Holding a mix of home-currency and SGD assets.
• Using multi-currency accounts to park funds strategically.

4. Review Your SRS & Retirement Investments

SRS investments are in SGD, so if you plan to retire overseas, include an FX-diversification strategy. Inflation-proofing here might mean:

• Adding global equity funds.
• Including a small allocation to commodities or infrastructure.
• Avoiding locking into overly long fixed-income instruments when rates are rising.



5. Keep Cash — But Not Too Much

Cash is important for short-term stability, but inflation eats it fast.
• Keep 3–6 months’ expenses in an easy-access account.
• For surplus, use short-term fixed deposits or money market funds.

6. Regularly Rebalance

Inflationary periods can quickly skew your portfolio allocation. Make annual or semi-annual rebalancing a habit.


Inflation isn’t a storm to be waited out, it’s a tide you have to swim against. With the right asset mix, currency strategy, and regular reviews, your portfolio can not just survive but thrive in Singapore’s evolving economic climate.