Singapore’s red-hot property prices ‘under control’ amid record US$317 billion of inflows, says central bank chief
- ‘When a large sum of money comes in to any country, you should be worried about it,’ Singapore’s central bank chief said of the record inflows
- But the city state is well-equipped to handle the surge, he said, adding that in terms of regulation ‘there’s so much money coming in, you can choose’
The Asian financial hub attracted S$448 billion (US$317 billion) last year, 15.8 per cent higher than the previous year, the latest data from the Monetary Authority of Singapore show.
More Chinese investing in Singapore homes, ‘politically stable’ environment
The inflows, which are roughly three quarters of Singapore’s nominal gross domestic product, come on top of gains from higher asset prices last year, according to the central bank. The assets are helping to boost the financial hub as it seeks to add as many as 20,000 finance jobs over five years, in areas including wealth management and sustainable financing.
Menon said money is coming from growing wealth across Asia, where the rich are seeking a place to invest. He acknowledged that North Asia’s affluent contribute a large portion of asset flows into Singapore.
“They are richer, they have more investible assets,” he said, speaking ahead of Singapore’s FinTech Festival that starts on Wednesday.
Asked whether China may see accelerated capital outflows, Menon said it’s too early to tell.
“There’s already some happening,” he said. “Some of it has come to Singapore, you would have seen in the last few years. I am not sure we are looking at any marked pickup.”
It’s pointless to compare housing markets in Hong Kong and Singapore
In the meantime, Singapore’s capital and financial markets, as well as its banking system, are deep and liquid enough to handle large fund flows, he said.
MAS, which also serves as financial regulator, is strict when it comes to illicit fund flows, repeatedly reminding financial institutions to be on guard, Menon said.
“There’s so much money coming in, you can choose,” he said.