Ask any Singaporean why they love going to Japan, and chances are you’ll hear:
“Because the things there feel so cheap!”
Luxury brands. Ski trips. $5 uni dons.
All thanks to our strong SGD vs the weak yen.
But here’s the question nobody asks:
Why is the yen so weak?
And what does that mean for us?
Japan Was Once Just Like Us 🏯
Back in the 1980s, the Japanese felt unstoppable.
- Their economy was booming.
- Their companies (Sony, Toyota, Mitsubishi) were dominating the world.
- Their yen was strong.
- Their people were proud.
Property?
They were obsessed.
Everyone wanted to own more land, more buildings, more investment units.
Sound familiar?
Some even believed that the land under the Imperial Palace in Tokyo was worth more than the entire state of California – yes, really (The New York Times, 1989).
With their strong yen, they bought up the world:
– Rockefeller Center in New York
– Hollywood studios like Columbia Pictures
– Resorts and golf courses across the US
It felt like the rise of a new global empire.
But Then It All Crashed 💥
In 1990, the bubble burst.
– The Nikkei stock index plunged more than 60% from its peak.
– Real estate prices fell for over a decade.
– Banks hid their losses – creating “zombie banks.”
– Japan entered what is now called The Lost Decades — a period of stagnation that stretched into the 2000s and beyond.
💱 What Happened to the Yen?
Here’s the twist: the yen didn’t collapse overnight.
In fact, in the 1990s, it actually got stronger — briefly.
But Japan’s central bank then slashed interest rates to zero.
Deflation set in.
People stopped borrowing.
Banks became bloated with non-performing loans.
And the yen?
It began a slow, steady decline.
From 2011 (¥76/USD) to 2025 (around ¥155/USD), the yen lost over 50% of its value.
Today, Japanese retirees find their savings buy less than before.
The silent cost of misplaced trust in a once-powerful currency.
And Property? It’s No Longer a Dream 🏠
In 2024, Japan is the land of multi-generation mortgages – home loans that extend to children or even grandchildren.
Young people are cautious.
Many are afraid to buy, having grown up seeing how the dream of property ownership turned into a decades-long burden.
Now Look at Singapore
- Our SGD is strong.
- Our reserves are well-managed.
- Our housing market is among the world’s most expensive.
We travel, shop, and invest with confidence.
But that’s exactly how Japan felt in the 1980s.
They didn’t fall because they were foolish.
They fell because they were too confident to see the cracks forming.
If it happened to Japan – disciplined, efficient, and advanced –
we’d be wise not to assume we’re immune.
Why I Save in Gold 🟡
I don’t save in gold because I think Singapore will collapse.
I save because I understand that strong systems can still have blind spots.
Gold is not a bet.
It’s a hedge against overconfidence.
- It’s outside the banking system.
- It can’t be printed.
- It has survived every currency shift in history.
You don’t need to start big.
Even RM100 / SGD34 is enough with Public Gold.
I prepare quietly.
Not out of fear.
But out of respect for history… and the future I want to protect.
