SINGAPORE: Senior Minister Goh Chok Tong said the
rising share of credit card defaulters among young adults in
Singapore should be closely monitored.
Mr Goh, who is also chairman of the Monetary
Authority of Singapore (MAS), said they accounted for 13.4 per cent
of credit card defaulters in November last year, compared to 9.4
per cent in January 2008.
Young adults aged 21 to 29 have also contributed to
the increase in "frequent revolvers."
Mr Goh said MAS has in place several measures to mitigate the risks
of over-borrowing by individuals.
For example, MAS has set the minimum annual income requirement for
credit cards at S$30,000 to ensure that credit cards are only
issued to individuals who have sufficient financial means to handle
them.
The maximum credit limit, including any other unsecured credit
facilities that a financial institution can give to such
individuals is limited to four times his monthly income. Financial
institutions must conduct comprehensive credit bureau checks before
granting individuals credit cards.
They supplement the rigorous credit assessments that MAS expects
financial institutions to conduct before they grant credit to
customers.
Mr Goh was replying to questions in Parliament from MPs who were
concerned about credit card debts.
-CNA/ac