Singapore saw record $448 billion inflow of new money in 2021

by Albert02

Singapore saw record $448 billion inflow of new money in 2021

Singapore saw record $448 billion inflow of new money in 2021. Singapore, according to the central bank governor, can withstand massive inflows of new money, allaying fears of a real estate bubble even as rents and prices near all-time highs. According to the most recent figures from the Monetary Authority of Singapore (MAS), the Asian financial hub would receive $448 billion in 2021, a 59% increase over the previous year.

“When a large quantity of money floods into any country, you should be concerned,” MAS managing director Ravi Menon told Bloomberg Television’s Haslinda Amin. Money inflows into the real estate sector, for example, are driving up prices. Instead of discouraging new entrants, the regulator has imposed cooling measures on the real estate sector. “That’s in control,” he said.

Singapore’s attempts to advertise itself as a global financial center are paying off, with the city experiencing a post-Covid-19 renaissance that is luring investors drawn to its stability. Local enterprise assets increased by 16% in 2021, to US$4 trillion (S$5.7 trillion), primarily from international sources, outpacing global growth. From US hedge fund tycoon Ray Dalio to Indian billionaire Mukesh Ambani, investors are establishing offices to manage their personal wealth.

Singapore’s housing market has remained strong despite speculations of a collapse in other key markets such as Australia, Hong Kong, and Canada, prompting the government to contemplate market-cooling measures. When landlords extend leases, they frequently request significant rent hikes, sometimes up to a double. According to the central bank, the inflows, which amount to approximately three-quarters of Singapore’s nominal GDP, come on top of gains from higher asset prices last year.

The assets will help the financial center meet its five-year aim of creating 20,000 finance jobs in areas like as wealth management and sustainable financing. According to Mr Menon, the funds are coming from Asia’s expanding wealth, where the wealthy are looking for a place to invest. He acknowledged that the wealthy of North Asia make for a significant percentage of asset flows into Singapore. “They are wealthier, and they have more investable assets,” he stated as the Singapore FinTech Festival kicked off on Wednesday.

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