Household debt on the rise but may be cushioned by wage, financial assets growth: MAS

DESPITE rising household debt, most borrowers are still likely able to repay loans, as wages and financial assets grow at a faster pace, said the Monetary Authority of Singapore (MAS) in its annual Financial Stability Review on Wednesday (Nov 27).

Singapore households’ financial vulnerabilities remained fairly low over the past year, supported by a “strong balance sheet” and “good credit quality”.

In the third quarter of 2024, households’ financial assets grew 8 per cent on the year, outpacing growth in overall household debt.