Singapore's $2.6 Trillion Massive Foreign Debt

Singapore has one of the world's highest foreign debts!

Narrated by Tom McKay
Video Edited by Iyanbriandi

Brought to you by the Behind Asian Team.

[BehindAsia]

Do you think having a big foreign debt is bad for Singapore? Let us know down below!

[khoolw]

The $2.6T are Singapore bank loans to the neighbours. It’s bank assets, not debt owed by the SG gov. Where did you learn finance?

[jacksim]

No problem at all. Singapore is a trusted financial hub and all the billionaires are parking their money here. So that is normal for banks to lend deposits.

[singapoo]

As one of the world's leading financial centres, the external debts are mainly deposits kept in Singapore banks by overseas banks and depositors. When borrowers take up loans, these deposits become part of the external assets. Importantly, the investment returns are more than sufficient to cover debt servicing costs.

[wwbren]

The whole video is made just for that 2 sec at 1:31. One has to think why this is highlighted for a topic that's only mildly relevant (Video can't even say China is one of the creditors of Singapore). Japan was just thrown in as a red herring.

[Abdul_Rahman]

Depends what Singapore does with the DEBT. Sometimes DEBT produces income if it’s spent in the right way.
I’d rather be $100k in debt but generate plenty of Cash flow that not only covers my debt repayment obligations but also give my a profit than have $100k worth of income which I have to pay taxes on and will inevitably corrode away due to inflation .

[biibikiki]

Woah using misleading headlines to attract views !!!! look at Singapore's financial and progress you will see that our country has one of the healthiest and progressive economy. Not forgetting the stability.

[soosainathan]

In short if external sources feel confident enough to pump in money from other countries, it show confidence in the system and governance. Just how much of that money originates from Indonesia, Malaysia Brunei etc. It is reflected in the strength of its currency.

[benbullUV]

Nothing to shout about is the trustworthiness and confident of a country administration that count international communities looking at.

[oberen]

Guess they didn’t put the true meaning of external debt here. It is the outstanding amount of current and not contingent liabilities owed to foreigners by residents.

[hikkomorisg]

“If you owe your bank manager a thousand pounds, you are at his mercy. If you owe him a million pounds, he is at yours.” - John Maynard Keynes

[pgobserver]

The video claiming Singapore has a $2.6 trillion foreign debt is based on accurate data, as reported by the Singapore Department of Statistics. This figure reflects the country’s gross external debt, which indeed surpasses its GDP of approximately $673 billion for 2023, making it seem disproportionately high. However, this debt primarily arises from Singapore’s status as a major financial hub, where deposits from foreign entities contribute significantly to the total. Thus, while the figure is factual, it requires context regarding Singapore’s unique economic structure.

[ohcho-fgco]

If debtors cannot payback, Singapore will be responsible and in big trouble.

[gavinhcc]

Lame excuses. Even after excluding the foreign deposits, Singapore foreign debt still stands at 1.3 trillion dollars, among the highest in the world.

[KaijiSingaporeVegan]

Singapore is smart. It take low interest loans and invests in high valued capital.

[weeshooen]

If the foreign debt is not the Sg sovereign debt owed to IMF or World Bank, Sg govt has no risk of becoming bankrupt.

[eewinstorn]

Do you know why so many billionaires park their money in Singapore?

[oldtabrough]

After watching this video, I still have no idea what he is talking. I failed my Economics during my A-levels exam

[kamsanajmain]

Well ...with the right person leading I'm sure we'll be able to overcome anything✊

[rrs]

Only one question ⁉️ who is paying the debts ???😅