SINGAPORE'S financial system has weathered the crisis well and the economy has rebounded strongly from recession, but some risks still remain, said the Monetary Authority of Singapore (MAS).

Key among them is the possibility of another surge in property market speculation, the central bank said in its annual Financial Stability Review on Monday.

The report, which analyses potential risks to the financial system, said low interest rates have helped to fuel the recent housing boom.

Rates are expected to stay low for some time and, as the economy improves, more property buyers and speculators may be drawn to the market, driving up housing demand and prices, said the MAS.

Apart from property speculation, the MAS also highlighted the risk that the global economic recovery may stall. This would halt Singapore's fledgling rebound in its tracks and hurt company profits.

In this scenario, unemployment would also rise. With both companies and consumers less able to pay back loans, banks would be affected and turn cautious on making new loans, which would further hold back the recovery, the MAS said.

Read the full story in Tuesday's edition of The Straits Times.