atans1

M’sia, S’pore tops Asean in household debt

In Indonesia, Infrastructure, Malaysia on 26/10/2013 at 7:31 am

Currently, M’sia‘s household debt stood at about 83% of gross domestic product. Household debt in S’pore now accounts for 75% of gross domestic product, having doubled in the last 13 years. According to Standard Chartered, a private bank, household borrowing as a share of national income now stands at 68% of Thailand’s GDP, much higher than in bigger Asian countries, such as China (20%), India (18%) and Indonesia (17%).

In other Asean round-up news:

Burma‘s Yangon had passed Singapore’s office rental rates of US$74 a square metre by the first quarter of this year according to estate agents Colliers. To give some context to this piece of info, something from yesterday’s BT: AT S$11 per square foot (psf) per month, or US$103 psf per year, the extended central business district comprising Raffles Place and Marina Bay is the eighth most expensive office area in the world, according to a Jones Lang LaSalle study.

Taking into account quoted rents from only premium office space in top sub-markets, Singapore was inched out by other Asian locations such as Hong Kong’s Central which commanded rents of HK$105 psf per month (US$162 psf per year) and Beijing’s Finance Street where corporates paid rents of 750 yuan per square metre per month (US$137 psf per year).

S’pore is sharing with Indonesia with its best practices in public-private partnership (PPP) in water and waste-water infrastructure projects.

Led by Singapore Cooperation Enterprise (SCE), an integrated arm of International Enterprise Singapore, and Temasek Foundation, the partnership programme will be delivered over a two-year period by a team of Singapore experts from both private and public sectors to 200 Indonesian government officials from various provinces and cities as well as ministries including the Ministry of Finance and Ministry of Public Works (Bappenas).

Singapore will provide knowledge in planning and procurement of water and waste-water infrastructure projects; and help cultivate a core group of officers from PT Sarana Multi Infrastruktur (Persero), a government partner promoting infrastructure development in Indonesia, who will develop public-private partnership training materials.

  1. In the last report in July,the bank said – Households had borrowings worth 151 per cent of their annual income last year, second in the region only to Malaysia, with debt at 182 per cent of income.
    This is mainly because consumers here take on large dollops of property debt, amounting to 111 per cent of household income – the highest level in the region, Stanchart said.
    – See more at: http://ifonlysingaporeans.blogspot.sg/2013/07/spore-debt-levels-among-highest-in-asia.html#sthash.xAABvXQM.dpuf

    Compared to the nearly bankrupt state – USA –
    U.S. Household debt as a % disposable income rose from 68% in 1980 to a peak of 128% in 2007, prior to dropping to 112% by 2011.
    Household debt as a % nominal GDP rose from 47% in 1980 to a peak of 94% in 2009, prior to dropping to 77% in 2012.[8]
    U.S. household debt rose from nearly zero in the 1950s to $13.8 trillion in 2008, before declining to $12.9 trillion by Q2 2012.[9]
    Consumer credit outstanding includes credit cards, auto loans, student loans, and other types of household debt, but excludes mortgages. It rose from 14.0% GDP in January 1990 to 18.0% GDP by January 2009. It fell to a trough of 16.4% GDP in July 2010 and was back up to 17.5% GDP by January 2013

    At 75% of gross domestic product,we are nearly there,but do note our HUGE amount of property debt, acquired at the peak of property value,compared to Uncle Sam low property value.JUST WATCH THE PROPERTY PRICES.

  2. It is interesting to note that in today Korea news 29.10.2013 that Japanese investment to Korea and China both down by about 30-40% but to ASEAN up 200%,that must be the good news for ASEAN.
    http://www.arirang.co.kr/Player/TV_Vod.asp?HL=L&code=VOD&vSeq=71469
    Allow me to come back to Singapore,it is a timely article by Andy Xie on China investment – Pick Your Poison -Temasek be careful!
    http://english.caixin.com/2013-10-28/100596446.html

  3. […] had borrowings worth 151 per cent of their annual income last year” and where “Household debt in S’pore now accounts for 75% of gross domestic product, having doubled in the las…“, while the Singapore government is among the world’s richest with one of the highest […]

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