Anna Agoncillo
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Singaporean households are taking on more debt than before, yet the broader financial landscape tells a reassuring story. Household balance sheet numbers from the recent Singapore Department of Statistics (SingStat) release showed that liabilities grew for the sixth consecutive quarter, rising 5.2% in the first quarter of 2025 compared with the same period a year ago and reaching $384.1 billion. This marks the sixth consecutive quarter of rising debt, driven mainly by increased borrowing for property purchases and other major expenses.
But don’t mistake rising debt for financial distress. For many Singaporeans, taking on long-term loans to finance big-ticket items such as homes is a sensible strategy, especially when balanced with careful cash management for everyday costs. In a city where the cost of living never sleeps, spreading payments over time helps families better manage their cash flow.
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Meanwhile, household financial assets have grown even faster, increasing by around 7.5% compared with a year ago to an estimated S$670.1 billion. This means that the liquid assets Singaporeans hold, including cash and bank deposits, comfortably cover their debts. With assets outpacing liabilities, overall household net worth remains healthy, climbing 8.1% in the first quarter compared to a year earlier, reaching $3.1 trillion. This marks a slight slowdown from the previous quarter’s 8.5% growth, but the momentum is unmistakable.
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Experts point out that housing loans continue to dominate household debt portfolios. Mortgage loans now represent more than 70% of total liabilities. Yet, resilient property values have provided a sturdy cushion, shielding households from overexposure and bolstering their net worth.
In essence, borrowing when paired with strong asset growth and responsible repayment can be a sign of financial strength rather than vulnerability.
