Here's what led the uptick in broad money supply

Foreign demand boosted the acceleration.

Singapore's broad money supply (M3) spiked up 8.7% in January, accelerating from an 8.1% rise the month before.

According to a report from RHB, this came as the demand for liquidity from the public segment and net foreign position
accelerated, whereas private credit demand eased from the month before.

"Going forward, M3 is expected to grow at around its current rate in the next few months, supported by expectations of a quicker-than-expected US Federal Reserve rate hike cycle and an improving export outlook," RHB said.

It added, "However, things may calm down in the latter part of the year as the hot money exits to seek assets with higher growth prospects. We maintain our forecast for M3 to expand 5.6% this year, from +4.2% in 2016."