Singapore household debt drops to lowest in over a decade

Less credit: The Helix bridge overlooking the city skyline in Singapore is a popular spot. High interest rates are discouraging the citizens of the city-state from taking new loans and healthy income growth is helping them pay off their obligations. — AFP

SINGAPORE: Singaporeans are reducing their debt levels as high interest rates discouraged them from taking new loans and healthy income growth helps them pay off their obligations, the central bank says in a report.

Aggregate household debt fell for the eighth consecutive quarter to 1.2 times personal disposable income in the third quarter of 2023, the lowest level in over a decade, the Monetary Authority of Singapore (MAS) said in its Financial Stability Review for this year.