These are the 2 biggest problems Singapore is facing right now

Are they getting worse?

According to CIMB, Singapore’s domestic headwinds seem to be abating. The country's problems were slowing growth and inflation. 

Slowing growth is reflected in the job market where net jobs created in 1Q13 were at a three-year low of 20.8k.

Here's more from CIMB:

But with retrenchments low, it has not changed the job market situation much. The banks have hardly any stress on the mortgage book.

The good news is that policies to curb inflation seem to be working and are not causing too much pain.

Recent property transaction volumes have halved to more palatable levels. HDB cash-over-valuations have started to contract. COE prices for cars have fallen.

All these have eased the CPI to a gentler 3.5% vs. close to 5% earlier in the year. The SMEs still complain about cost pressures, particularly the construction sector.

However, there does not seem to be too much stress on the SME loans in the banks; all three banks have not noted any credit red flags.

The REITs are still applying upward rental reversions to retail assets but rentals have turned a bit soft for some commercial and hotel assets have seen rentals.