SINGAPORE: The good times might still be here, but some
Singaporeans are biting off more than they can chew.
After falling from a high four years ago, the downward trend of
bankruptcy petitions and orders is showing signs of reversing,
while the delinquency rate for credit cardholders is creeping up.
Another sign that Singaporeans could be facing cash-flow woes:
Pawnshops are enjoying brisk business.
ValueMax Group operations manager Yeah Lee Ching said some people
run out of cash before the next payday. "They pawn their items to
tide over the last week of the month and redeem their items after
they get next month's pay."
Noting that nine in 10 customers redeem their items, she added:
"These are not poor people. They own gold, diamonds and expensive
watches."
In January, there were 292 petitions for bankruptcy and 215
bankruptcy orders were passed, according to the Insolvency and
Public Trustee's Office. Last year, 268 bankruptcy petitions were
filed and 230 orders were passed on average each month.
According to data from Credit Bureau (Singapore), the number of
delinquent credit card holders has risen steadily. Last December,
14,379 defaulted on their bills — a 1.42-per-cent delinquency rate
— as compared to 11,346 and 1.16 per cent in July.
Most owe less than $5,000 each. The majority are between 21 and 44
years old, and men make up almost 70 per cent.
About 80 per cent of the delinquents have credit cards with at
least two banks.
Still, the bad debts, while apparently widespread, appear fairly
contained for now.
The responses from banks to TODAY's queries on property
foreclosures seem to bear this out.
The three local banks said there was no discernable spike in the
number of flats getting repossessed. A DBS spokesperson added that
neither were there any increases in the number of foreclosures for
commercial and industrial properties.
Still, property market sentiments remain tentative. ERA Realty
Network assistant vice-president Eugene Lim said: "There is more
bargain hunting now. You don't see many people jumping in and
buying straightaway, unlike last year."
And it's not just the big-ticket purchases with which Singaporeans
are more discerning. NTUC FairPrice managing director Seah Kian
Peng said sales of its housebrand products in the last few months
have been "very encouraging".