How can Singapore deal with its massive debt?

[Taro Ries]

WHOA! Look at Singapore's debt skyrocket after the great recession! Someone please explain what happened?

 

[wwabbit]

People should try to have a basic understanding of macroeconomics before passing judgement.

 

[traineemamisan]

SGreans r pretty much the same shape, who don't owe debts nowadays? hdb, car or others
1) I can never buy the idea of a woman(u knw who)to invest
2) PayAndPay whereby they capitalize on increasing policies like ERPs, COE etc
3) Competency of the Parliament is failing (to me only, must b tactful) with many policies that need to b rectified
Will we become like the US once the bubble burst. (5yrs ago, my parents sold their 4rm in the west 4 200k+, now for a 5rm in the west is almost 600k)

 

[samsbestfriend]

WHOA! Look at Singapore's debt skyrocket after the great recession! Someone please explain what happened?

This is what happened, http://www.economist.com/news/finan...-banks-household-debt-soars-perils-gilded-age

According to Standard Chartered, Singapore’s households have loans averaging 151% of annual income, second only to Malaysia’s in South-East Asia.

Housing debt in particular has soared, rising by 18% a year over the past three years; home loans as a share of GDP have jumped from 35% to 46% over the same period. According to figures released this week by Credit Bureau Singapore, the number of borrowers with at least two mortgages as well as other loans has risen by 78%, to 48,782, since 2008. In a population of just 5m, these numbers count.

Rock-bottom interest rates are the reason why people are taking on debt as never before. Such behaviour is rational enough but many worry about the systemic consequences of a swift build-up of debt. The local housing market, which accounts for most of the loans, looks overheated. Despite seven rounds of “cooling” measures by the authorities to try to slow the relentless spiral of property prices, demand remains strong as people just borrow more to buy their dream condo or government-built flat.