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End of easy monetary policies could bring risks for Singapore: MAS

Published on Dec 3, 2013 12:00 PM
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As developed economies recover and withdraw their easy monetary policies, the tide of cheap money will abate, which could lead to considerable risks for Singapore, regulators warned on Tuesday.

Of particular concern is the build-up of private and public sector debt in recent years, said the Monetary Authority of Singapore (MAS) in its latest financial stability review.

Corporate debt has increased across almost all sectors and household debt has also climbed over the past few years in tandem with rising assets and wealth.

If the scaling back of stimulus measures by developed economies triggers an abrupt tightening of financial conditions, debt servicing burdens in Asia could rise sharply.

 
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