But currently, STI ETF has shot up to $2.90 and above. The current fundamentals do not seem to justify this.
The explanation may be "hot money" flowing into Singapore. Headline from Bloomberg via the Straits Times:
SINGAPORE (BLOOMBERG) - Haven buying of the Singapore dollar amid global market turmoil has pushed a gauge of its strength to unprecedented levels, putting pressure on the city's central bank to do more to support the economy.
Just because S$ is high now doesn't mean it will continue to be high in the future. In fact, the likely scenario is MAS will intervene and/or the single Fed rate hike this year (yes, some think zero rate hike) will move US$/S$ to a more normal level of around 1.4.
Like many shoppers, I take the strong S$ as an opportunity to go shopping for foreign stocks and will also put some S$ into US$ bond funds.