Date: For Parliament Sitting on 9 May 2023

Name and Constituency of Member of Parliament

Mr Saktiandi Supaat,  Bishan-Toa Payoh GRC

Question: 

To ask the Prime Minister (a) whether the Ministry is anticipating a further rise in bankruptcy applications in 2023; and (b) whether residential and commercial mortgagee listings are at risk of rising further amid higher interest rates and a tougher business climate.

Answer by Mr Alvin Tan, Minister of State, Ministry of Trade and Industry and Ministry of Culture, Community and Youth, and Board member of MAS, on behalf of Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:

1. The number of bankruptcy applications filed by individuals was 959 in Q1 2023. This is slightly higher than the average quarterly bankruptcy applications of 912 in 2022. 

2. Bankruptcy applications could pick up further as a small segment of more vulnerable borrowers faces higher risks of financial distress amid higher interest rates and slower economic growth. 

3. The Member also asked about mortgagee-listings. There has not been a pick up in property-related foreclosures thus far. Five commercial and five residential loans were foreclosed by FIs in Q1 2023, compared to an average of 4 commercial and 12 residential foreclosures per quarter in 2022. 

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