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. According to the central bank governor, Singapore can endure huge inflows of new money, allaying fears of a real estate bubble even as rents and prices approach record highs. According to the most recent Monetary Authority of Singapore (MAS) figures, the Asian financial hub would attract $448 billion in 2021, a 59% increase over the previous year.

“You should be concerned when a big amount of money pours into any country,” MAS managing director Ravi Menon told Bloomberg Television’s Haslinda Amin. One example is that money inflows into the real estate sector are driving up prices. Instead of discouraging new money from entering the market, the regulator has imposed cooling measures on the real estate sector. “That’s under control,” he told them.

Singapore’s efforts to promote itself as a global financial center are bearing fruit, with the city undergoing a post-Covid-19 resurgence that is attracting investors attracted to its stability. Local enterprise assets expanded by 16% in 2021 to US$4 trillion (S$5.7 trillion), mostly from overseas sources, exceeding global expansion. Investors ranging from US hedge fund tycoon Ray Dalio to Indian billionaire Mukesh Ambani are creating offices to manage their personal funds.

Singapore’s housing market has held up in the face of rumors of a drop in other major markets such as Australia, Hong Kong, and Canada, forcing the government to consider market-cooling measures. When landlords extend leases, they routinely want hefty rent increases, sometimes up to a double. The inflows, which amount to around three-quarters of Singapore’s nominal GDP, come on top of gains from higher asset prices last year, according to the central bank.

The assets are aiding the financial center in its goal of creating 20,000 finance jobs in sectors such as wealth management and sustainable financing over the next five years. Mr Menon claimed that the funds are coming from Asia’s growing riches, where the wealthy are seeking for a place to invest. He admitted that the wealthy of North Asia account for a sizable portion of asset flows into Singapore. “They are wealthier, and they have more investable assets,” he said ahead of the start of Singapore’s FinTech Festival on Wednesday.

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