SINGAPORE has a high degree of resilience to global shocks, despite its open economy and dependence on the global financial system, said ratings agency Moody's.

But the economy is facing both structural challenges as growth slows down and the political landscape changes.

In its annual credit report on Singapore released yesterday, Moody's said Singapore excels in four areas: its strong economy, institutions, government finances and low vulnerability to external shocks.

It added that while the recent elections showed an "erosion in support for the ruling party", political stability is not under threat.

This article was first published in The New Paper.