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Singapore debt levels 'among highest in Asia'

Property debts high but households have robust buffer of financial assets: Report

Published on Jul 3, 2013 7:28 AM
 
An aerial view of HDB flats in Toa Payoh. Singapore households are among the most indebted in Asia relative to what they earn, according to a Standard Chartered report this week. -- ST FILE PHOTO: ALPHONSUS CHERN

Singapore households are among the most indebted in Asia relative to what they earn, according to a Standard Chartered report this week.

Households had borrowings worth 151 per cent of their annual income last year, second in the region only to Malaysia, with debt at 182 per cent of income.

This is mainly because consumers here take on large dollops of property debt, amounting to 111 per cent of household income - the highest level in the region, Stanchart said.

On the bright side, households have a robust buffer of financial assets from high savings, so their debt levels are relatively low compared to these assets, the bank added.

 
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