Singapore says foreign residents’ deposits fell by RM73.5bil

SINGAPORE, April 29 (Bloomberg): Residents outside Singapore pulled billions in deposits last month amid financial turmoil triggered by the collapse of several banks globally.

Foreign resident deposits saw an outflow of S$22.2 billion (US$16.6 billion - RM73.5 billion) to S$521.8 billion in March, falling to the lowest level since July, according to data by the Monetary Authority of Singapore.

Total outstanding loans and advances by commercial banks including bills financing dropped by about S$7 billion to S$796.87 billion, the lowest level since August 2021. This came after the central bank tightened monetary policy five times in a row, before keeping its policy settings unchanged this month.

Earlier this week, the monetary authority warned "prospects in the financial sector have weakened further amid turbulence from the US banking industry,” fanning fears of a broader contagion in the banking system and increased downside risks to expansion.

Economic growth is expected to remain subdued in 2023 due to a slowing external outlook, persistent inflation and restrictive financial conditions, it said.

In a separate labor report Friday, Singapore’s unemployment eased to an eight-year low of 1.8% in the first quarter, while retrenchments rose for a third consecutive quarter.

Employment growth is likely to ease and remain uneven across sectors, as global economic headwinds weigh on labor demand going forward, particularly for outward-oriented sectors, the Ministry of Manpower said. - Reuters