Updated: 12/03/2013 21:17

MAS concerned over rising household debts

MAS concerned over rising household debts

The Monetary Authority of Singapore, MAS, says it's concerned over rising household debts in Singapore. 

It has risen alongside the increase in household sector and net wealth over the past few years. 

MAS says a change in the generally benign environment of modest economic growth, tight labour market conditions and low interest rates could pose strains on some households. 

Data from Credit Counselling Singapore shows that the average outstanding debt owed by individuals seeking credit counselling has increased by 15 per cent over the past four years, to $79,700.

The number of individual bankruptcy orders made has also been trending up, to about 1,700 cases last year. 

This trend has continued for the first three quarters of this year. 

Measures are already in place to encourage financial prudence among borrowers. 

These cover: housing loans, motor vehicle loans and unsecured credit. 

MAS says housing loans continue to account for 74 per cent of household liabilities. 

It says this proportion is broadly comparable to that of several other economies including Hong Kong, Taiwan, Australia, the US and UK. 

The next biggest component after housing loans is motor vehicle loans, which account for 4.6 per cent of household liabilities.

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