Singapore’s $800 Billion Massive Debt, Explained

The cost of servicing these debts, majority still stays within the Singapore economy. Unlike external debt, where a country is servicing debt cost of say for example 4 to 5% of GDP and there are leaks outwards. While such leaks should not be an issue when interest rate is low (however if its high the burden increases). Coupled by how the debt is used, for example servicing current budget deficit, this will accumulate and be an increasing burden as lesser monies will be available for the economy. Creating a continuous spiral.

Singapore high debt, for example towards CPF, the monies still stay within the economy. And accumulation of CPF monies are used mainly for retirement and healthcare which reduces the government social spending or social burden. Furthermore these monies in certain account can be used for housing purchase, education and investment.
This in turn brings long term social stability, potential growth in productivity, lower social spending burden and lower tax rate. Yes there might be leakage say SGS where maybe foreign investors invest.

There are good debts and bad debts, good debts allow one to accumulate assets and increase productivity and sustain good growth. Good Debts that provides multi-generations smoothing when investing in long term infrastructure.

Bad Debts which is consuming more and increasing limits to finance past spending while increasing social burdens and increasing revenue requirements (Taxes) but not using it to invest in long term benefit of the economy and its people.

When they have debt, they mark up at GST to cover the losses.❤❤❤❤❤❤❤❤❤

The Singapore government’s assets are much. much higher than its debt, meaning Singapore has NO NET DEBT. End of story.

Smart debt.