Opinion
Worrying trend: Why do so many Singaporeans have to borrow so much more?
Opinion: Rising loan applications among middle-aged Singaporeans raise doubts about government claims of economic stability. Are cost-of-living pressures more severe than acknowledged?
![](https://gutzymedia.s3.ap-northeast-2.amazonaws.com/wp/2024/08/14133125/singapore-people.png)
by Leong Sze Hian
A recent report by loan matching platform Lendela, released on 8 August, has revealed a significant increase in loan applications among middle-aged Singaporeans.
Over the past two years, the share of loan applications from individuals aged 40 to 59 has jumped by nearly a third, with the average loan size reaching S$22,000. According to the report, these loans are primarily being taken out to cover living costs and manage debt, including recurring bills, debt consolidation, and credit card payments.
More concerning is the profile of the borrowers. It isn’t just those on the financial edge who are seeking loans; middle- and high-income earners are also increasingly turning to borrowing.
Specifically, there was a 35 per cent rise in loan applications from middle-income Singaporeans earning between S$48,000 and S$84,000 annually, and a striking 64 per cent increase among those earning above S$84,000 a year.
Moreover, the size of these loans is not insignificant. A fifth of all cost-of-living loan applications exceed S$20,000, and the share of borrowers with existing debts has increased by 25 per cent from June 2022 to June 2024. Those carrying large debts over S$50,000 have seen a 56 per cent rise.
Even retirees have not been spared from this borrowing trend, with a 50 per cent jump in loan applications from those over 60 years old since 2022, even though they represent only 3 per cent of total applications.
These statistics seem to prompt several questions regarding the current state of financial well-being in Singapore. If incomes are indeed as strong as the government claims, why are so many middle-aged Singaporeans—including those earning above the median wage—resorting to loans just to manage their daily expenses? Could this suggest that the cost-of-living pressures are more intense and widespread than is commonly acknowledged?
The government has often assured the public that Singapore’s social welfare policies are sufficient to meet the population’s needs. But if this is the case, why are even middle- and high-income earners, who are presumably more financially secure, increasingly relying on loans? Could this be an indication that the social safety nets may not be as robust as they are portrayed?
The report also raises concerns about the adequacy of retirement provisions. Why are retirees, who should ideally be living off their savings and retirement funds, turning to loans? Does this suggest that the current retirement system may not be providing enough security for our elderly population?
These questions point to the need for a closer examination of the government’s approach to addressing financial insecurity and the rising cost of living. Could it be time for a re-evaluation of the policies in place, to ensure they truly meet the needs of all Singaporeans? The growing reliance on loans, even among those who should be financially stable, might indicate that more needs to be done to align policy with the realities faced by the population.
Ultimately, these trends raise important questions that warrant thoughtful consideration. As Singaporeans continue to grapple with financial pressures, it is crucial that these issues are addressed in a way that genuinely reflects and responds to the needs of the people.
![](https://gutzy.asia/wp-content/uploads/2023/10/Gutzy-Logo-whiteS.png)
-
Politics2 weeks ago
Jamus Lim on Minister Chee Hong Tat’s remarks on fiscal policy: Calls for genuine debate over rhetoric
-
Community2 weeks ago
Toast Box faces backlash and boycott calls amid price increases
-
Media1 week ago
Notice to Our Readers: Moving Back to The Online Citizen
-
Singapore2 weeks ago
Singapore introduces new scheme in April 2025 offering up to S$6,000 in financial support for retrenched workers
-
Politics2 weeks ago
Jamus Lim raises concerns over high cost of living and its impact on Singaporeans’ sense of belonging
-
Opinion2 weeks ago
Chee Hong Tat’s call for fiscal prudence rings hollow amid contradictory government spending
-
Singapore2 weeks ago
Tan Suee Chieh: Sacrificing NTUC Income’s values for short-term gains undermines its foundation
-
Comments2 weeks ago
Netizens raise skepticism over Inclusiveness of Singapore’s new Jobseeker Support scheme
No Developed Country has very comfortably employed or retired people lah. OK. ( maybe Real Swiss).
SG same!!! Go Out There & Make Your Money!!!! Beg, Borrow or Steal.!!!!
For Ho Jinx has spent it all.
80% in Public Housing, don’t have assets. Now we are in future borrowing. Next it will be bankruptcy as all our assets are in the hands of our government unlike other First World States.
Mr Leong has been quiet for a while it seems one don’t come across his articles recent weeks.
Take care Mr Leong.
U are needed to EXPSOE PAP Frauds.
PAP CANNOT and DO NOT afford SG to be rich then NO MORE DEPENDENCY on PAP which is this Regimes legitimacy.
Have money in SGpn hands, they Chok Guai.
The PAP Administration has intended SG to be heavily indebted bc then in such situations gives the PAP Administration valuable opportunity to assume role as BENEFACTORS of SG and thru them, SGpns can prosper via means of PAP generous handouts few times a year, Budget Day, ND, MidYear, Year End, and Ad hoc.
Why is CPF retained.
Why is CPF withdrawals pushed MORE and MORE back.
Why WITH NO LOGIC GST raised by HEFTY almost 30 per cent WHEN HARD SHIPS BOMBARD SG?
PAP has ALL MAGIC ANSWERS. Its In their SOP handbook.
As the population increase (artificially through mass importing aliens), more and more native Singaporeans will be sidelined or have their lunch and even their dinner stolen by others. You go around HDB carparks, 20 years ago it was full and at times residents cannot get a season lot and 20+ years ago, demand for HDB 3-room flats were so low as people are not buying as they are richer then. Back to today, HDB carpark lots much emptier at night and demand for 1 and 2 room HDB flats in high demand. But then didn’t SG become richer in the… Read more »
Some one say ,I give you vouchers more than enough already.
If not enough, its your own problem.
Take for example a Mayor, each gets paid close to over $700,000 per yr plus their monthly MP pay of $19,600 bonus not included.
They never complain about rising cost of living or need to borrow, correct?
So why are the rest claiming …not enough money?😆😆😆🤣🤣😆😆😆
SillyPoreans across the board, … are falling behind and not keeping up !!! And you have comments from many many moons and months ago I recall, … that there’s no signs of this “cost of living crisis” biting, let alone impacting the islanders, as malls are thronging with people, and the car park queues are snaking round the block !!! If the masses are not gettin real, … then continue your existence in the dark and when the dawn finally “appears” for you, … it’ll be too late as it’ll be another five years, whether you like it or not… Read more »
Incomes have not kept up with inflation. Cost of living is through the roof, yet salaries at the entry level are still stuck from 10 – 15 years ago.
And you wonder why our TFR is still going down even after three decades of various “baby-bonus” schemes (scams).
With long term mortgages to service and a further erosion of their real income by persistent rising COL, working Singaporean may be forced to seek temporary relief through more debts to help fill that liquidity “gap”.If real income were to contract further with no sign of income growth,many more of them may soon go into financial difficulties thereafter thrown into the ,”hole” of bankruptcy.So sad to witness that those expected consequences of the regime’s “what wrong with collecting more money” and”foreign talents and billionaires create well paying jobs for struggling Singaporean workers” policies have now began to emerge to haunt… Read more »
How many of you believe in papigs ?
死路一條
The Lease and Buy Back SCHEME wasn’t clear enough is it ?
Loan from who ?
Ah Loong or Bank ?
Just PAWN your house , no need interest at all .