Property acquisition is significant driver of debts in Singapore

Less than half of Singaporeans take loans or debts to buy immovable property.

Buying a property is the main reason behind Singaporeans’ indebtedness, with 49% saying they would take out loans to purchase immovable property, a Milieu Insight study showed.

The next reason why Singaporeans loan is to cover unexpected expenses (27%) and to secure urgent funds (24%).

In Singapore, 14% of respondents are saving more than 50% of their income, the study also indicated.

Findings also showed that less than one in five Singaporeans aged 16 to 34 said they have not learned about personal finance. Most sources of learning about money matters are from Internet and formal education, the respondents from Singapore said.

The Milieu Insight study found that 62% of Southeast Asia have debts or loans, with Malaysia (79%) and Vietnam (76%) emerging as the nations grappling with the highest prevalence of people who have loans or currently holding debt.

The survey maker urged Southeast Asians to learn financial education to weather the consequences of evolving economic conditions. 

“By fostering a culture of learning and financial awareness, we can equip our communities with the tools to make sound financial decisions and achieve financial security,” Milieu Insight said.

The research firm in Southeast Asia has conducted a regional study on the financial realities amongst Southeast Asian individuals, with 500 respondents each in Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines. 

The study determines borrowing habits, debt types, and personal finance awareness.