MAS has issued a statement that some of our households here seem to be taking on quite a large debt as evidenced from their high debt servicing ratios. MAS says that the current low interest rates may be increased once the US starts to tighten its Quantitative Easing or stimulus measure. While I agree with the need for us to be cautious about taking too much of a debt, I do think that debt is inevitable in today’s society, especially in our society and having a large debt may also be needed so as to be rich, ironically. Instead of just looking at the total debt servicing ratio of Singaporeans, I would think it will be more comprehensive and holistic to take a look at whether a debt is good or bad to an individual or an individual household as well as the overall cash flow or strategy of those ......
