MAS: Singapore not facing credit bubble

SINGAPORE - Singapore is not facing a credit bubble because its property market is stabilising, household balance sheets are strong and the financial system is robust, the Monetary Authority of Singapore (MAS) said on Jan 14 in response to a critical article in Forbes. "Singapore is not facing a credit bubble that puts the country or its banking system at any risk of crisis," MAS wrote in a statement. "Serious observers and investors are not in doubt about the country's financial health."

A contributed article in the magazine this week argued that Singapore was heading for an "Iceland-style meltdown", citing property prices and construction activity inflated by abnormally low interest rates, among others.

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