Photo: A view of the financial district in Singapore on March 4, 2014. The soaring cost of cars and utilities as well as a strong currency have made Singapore the world's most expensive city, toppling Tokyo from the top spot, a survey showed on March 4; AFP/Roslan Rahman
According to a report published by Hong Kong-based financial firm GMT Research, Singapore's economic growth is slowing down, while its debt swells. The city-state is now the third Asian country most in debt, after China and India.
In a Bloomberg article written by David Yong, a 43-year-old former analyst at CLSA Asia-Pacific Markets and founder of GMT Research, Gillem Tulloch, is quoted as being surprised at the increasing leverage ratio among Singaporean companies, and believes that Singapore's debt has reached a "danger threshold" level. "There's been a slight loss of discipline, or it could be that the growth has not come in as expected," Tulloch adds.
The report also shows that debt rose to six times the amount of operating cash flow in 2013 for non-financial Singaporean companies, from 5.1 times in 2012.
GMT Research's report comes some months after Forbes contributor Jesse Colombo warned of Singapore suffering a risky credit bubble linked to high property prices. The city-state had refuted Colombo's claim, with the Monetary Authority of Singapore (MAS) insisting the government has taken decisive steps to cool property demand and prevent excessive leverage.
Read Also: Singapore responds to Forbes''Iceland prediction'
Photo: A view of the financial district in Singapore on March 4, 2014. The soaring cost of cars and utilities as well as a strong currency have made Singapore the world's most expensive city, toppling Tokyo from the top spot, a survey showed on March 4; AFP/Roslan Rahman
According to a report published by Hong Kong-based financial firm GMT Research, Singapore's economic growth is slowing down, while its debt swells. The city-state is now the third Asian country most in debt, after China and India.
In a Bloomberg article written by David Yong, a 43-year-old former analyst at CLSA Asia-Pacific Markets and founder of GMT Research, Gillem Tulloch, is quoted as being surprised at the increasing leverage ratio among Singaporean companies, and believes that Singapore's debt has reached a "danger threshold" level. "There's been a slight loss of discipline, or it could be that the growth has not come in as expected," Tulloch adds.
The report also shows that debt rose to six times the amount of operating cash flow in 2013 for non-financial Singaporean companies, from 5.1 times in 2012.
GMT Research's report comes some months after Forbes contributor Jesse Colombo warned of Singapore suffering a risky credit bubble linked to high property prices. The city-state had refuted Colombo's claim, with the Monetary Authority of Singapore (MAS) insisting the government has taken decisive steps to cool property demand and prevent excessive leverage.
Read Also: Singapore responds to Forbes''Iceland prediction'