Still, Singapore remains well placed to cope with the challenging environment as banks’ credit quality has continued to be strong and most companies and households have weathered the pass-through of rising interest rates with no significant increase in loan delinquency, the central bank said.
On the closely-watched property front, the central bank said rental pressures in the residential market should “continue to abate” with a large supply of units being completed.
The momentum in price rises has also moderated, and demand is expected to be restrained by high interest rates and moderation in wage growth, according to the central bank. Foreign demand in Singapore’s private residential property market has fallen to about 4 per cent of total transaction activity in 2023, down from more than 6 per cent in the first quarter before the latest round of cooling measures were introduced, it said.
Singapore’s economy grows, monetary policy remains unchanged
Singapore’s economy grows, monetary policy remains unchanged
Meanwhile, the city state’s finance firms are now more concerned about risks stemming from potential money laundering and terrorism financing, in the wake of the island-wide raid earlier this year that captured more than US$2 billion in a crime ring.
That’s according to the Financial Stability Review that compared views last month with those from April. Laundering and terrorism financing saw the largest increase, while macrofinancial risk arising from elevated interest rates and slower economic growth remained the biggest perceived risk.
Singapore’s luxury property market grinds to a halt amid money laundering probe
Singapore’s luxury property market grinds to a halt amid money laundering probe
Money laundering and terrorism financing will continue to be “a major challenge for global financial hubs given their open capital accounts and large gross capital inflows,” the central bank said, adding the regulator will stay engaged with the industry to identify and disrupt illegal activities.
The October survey had a response rate of 97 per cent from 56 firms, compared with 96 per cent from 46 in the inaugural one.
More than S$2.8 billion of assets have now been frozen or seized by police, including more than 150 properties, and a probe remains ongoing in a bid to determine whether the accused made illicit gains from overseas gambling rings.