How can Singapore deal with its massive debt?

[samsbestfriend]

The External Debt of Singapore (public + private) is 425 (% of GDP) with a global rank of 7.

The Public debt of Singapore is 111 (% of GDP) with a global rank of 13.

Singapore is obviously not doing so well, what happens if the private and public sector can't pay their debts?

 

[NoNewsGood]

Who are the creditors?

 

[wwabbit]

The External Debt of Singapore (public + private) is 425 (% of GDP) with a global rank of 7.

The Public debt of Singapore is 111 (% of GDP) with a global rank of 13.

Singapore is obviously not doing so well, what happens if the private and public sector can't pay their debts?

High debt doesn't tell the full story of how well a country is doing. If you owe a lot of money but have a lot of assets and earn a lot of money then you have no problem paying back. Singapore is more than able to sustain our debt, and this is reflected in our credit rating, 3rd best in the world: http://en.wikipedia.org/wiki/Credit_rating, and given the highest AAA rating by all top credit rating bureaus.

We get a high credit rating because
1. The value of our assets is a lot higher than our debt and liabilities
2. Our returns more than cover debt servicing cost

 

[winnipegjets]

High debt doesn't tell the full story of how well a country is doing. If you owe a lot of money but have a lot of assets and earn a lot of money then you have no problem paying back. Singapore is more than able to sustain our debt, and this is reflected in our credit rating, 3rd best in the world: http://en.wikipedia.org/wiki/Credit_rating, and given the highest AAA rating by all top credit rating bureaus.

We get a high credit rating because
1. The value of our assets is a lot higher than our debt and liabilities
2. Our returns more than cover debt servicing cost

That's if you believe all the statistics churned out by the PAP. Do you believe all the statistics from PRC?

 

[steffychun]

Ask IMf for help

 

[Thick Face Black Heart]

High debt doesn't tell the full story of how well a country is doing. If you owe a lot of money but have a lot of assets and earn a lot of money then you have no problem paying back. Singapore is more than able to sustain our debt, and this is reflected in our credit rating, 3rd best in the world: http://en.wikipedia.org/wiki/Credit_rating, and given the highest AAA rating by all top credit rating bureaus.

We get a high credit rating because
1. The value of our assets is a lot higher than our debt and liabilities
2. Our returns more than cover debt servicing cost

Spot on. If debt is backed by income-generating assets, then it is not bad debt. Only excessive sovereign debt that is backed only by the strength of the currency or by government revenues is bad debt. SG does not have excessive sovereign debt.

The government has to ensure that revenue streams more than make up for the cost of debts servicing. That is why asset prices have been allowed to inflate and rentals have been allowed to sky rocket.

 

[PhuaCheeBye]

PAP EATING AND SIPHONING OUR CPF MONIES....damn!

 

[OldFart]

Singaporeans could work harder, improve their skills to be in ore demand to pay off the country's debts. Why not? Duty calls.

 

[wwabbit]

That's if you believe all the statistics churned out by the PAP. Do you believe all the statistics from PRC?

Standard and Poors, Moody's Investment, Dun & Bradstreet, Fitch Group, etc all have nothing to do with the PAP.

 

[Seee3]

Standard and Poors, Moody's Investment, Dun & Bradstreet, Fitch Group, etc all have nothing to do with the PAP.

Unfortunately they are also the ones who have given top ratings to those toxic derivatives prior to 2008.

 

[PhuaCheeBye]

where is my cpf money???

 

[samsbestfriend]

... Singapore is more than able to sustain our debt, and this is reflected in our credit rating, 3rd best in the world: ...and given the highest AAA rating ...

Thanks for your reply wwabbit, that is a good a point, I am convinced and happy to hear that.
Another question, How did we get this debt at the first place? what if we keep borrowing more money? In that case it is not our debt servicing cost that worries us, but the new potential debt is the problem

 

[wwabbit]

Thanks for your reply wwabbit, that is a good a point, I am convinced and happy to hear that.
Another question, How did we get this debt at the first place? what if we keep borrowing more money? In that case it is not our debt servicing cost that worries us, but the new potential debt is the problem

Depends on whether you are thinking of external debt or public debt.

In the case of public debt, our government only has two sources of borrowing. Issuing of government bonds in the form of SGS, or borrowing from our CPF funds. This site explains more about our government debt: http://www.gov.sg/government/web/co...ainableforSingaporetohavesuchahighlevelofdebt

Since government debt doesn't contribute to external debt at all, our external debt is made up of privates and corporations borrowing from overseas.

 

[wwabbit]

where is my cpf money???

If you go to www.cpf.gov.sg login with your singpass you can see your cpf balance.

 

[jw5]

If you go to www.cpf.gov.sg login with your singpass you can see your cpf balance.

He is asking where the money is, not how much the balance is!

 

[virus]

I see one solution. Disintegrate the sorry state fund cash out and distribute to all. Let and everyone worry for their own debt instead,@

 

[Dreamer1]

I see one solution. Disintegrate the sorry state fund cash out and distribute to all. Let and everyone worry for their own debt instead,@

Singapore government think they are George Soro,,or at least their good friend Jim Rogers,but Rogers has already warned that global depression on its way,Madam Ho thinks she is smarter than Jim Rogers,I urge our citizens to be prepared to write off their CPF money now,when the time comes,they can take it easy.

 

[Deleted member 80916]

Hows does Malaysia compare with Singapore, relating to debt ? thanks

The External Debt of Singapore (public + private) is 425 (% of GDP) with a global rank of 7.

The Public debt of Singapore is 111 (% of GDP) with a global rank of 13.

Singapore is obviously not doing so well, what happens if the private and public sector can't pay their debts?

 

[zeebjii]

He is asking where the money is, not how much the balance is!

Sounds sophisticated, but fucking naive. if any investor logged in to check his lehman brothers or bear sterns account anytime before 2008, it would show a 'balance' too.

 

[samsbestfriend]

Hows does Malaysia compare with Singapore, relating to debt ? thanks

During the global recession the public debt of Malaysia as a percentage of the GDP rose form 40% to 53%, yet it is still half that of Singapore.

As to the external debt of Malaysia, which includes public and private debt, it is at 32 % of the GDP, which means most of the public debt in Malaysia is internal.

In the charts below you can see the comparison between the Singapore and Malaysia's Debt.

Public debt comparison between Singapore and Malaysia

External debt comparison between Singapore and Malaysia