Local bankruptcies rose to record-high even before the pandemic hit

The number of individuals filing for bankruptcy soared 47% from 2018 to 434 in January.

Singapore is bracing for a further jump in bankruptcies after cases surged to the highest in almost 16 years even before the coronavirus pandemic hit.

The number of individuals filing for bankruptcy soared 47% from a year earlier to 434 in January, the highest since October 2004, according to the latest data from the Law Ministry’s Insolvency Office. Companies in liquidation jumped to 287 last year, the highest since records began in 2005.

Singapore’s already-slowing economy is now poised to shrink as the virus slams trade and tourism. That’s likely to send more businesses and individuals broke, leading to an increase in bad loans at banks including DBS Group Holdings even as they ease borrowing terms.

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