Date: For Parliament Sitting on 7 October 2026

Name and Constituency of Member of Parliament

Mr Yip Hon Weng, Yio Chu Kang SMC

Question

Mr Yip Hon Weng: To ask the Prime Minister and Minister for Finance given MAS’ finding that one percent of borrowers, mainly lower income, middle-aged HDB residents, could face negative cash flow with savings below six months of the stress-tested income shortfall (a) how many households does this represent; and (b) how will MAS work with banks and agencies to identify them early and provide loan restructuring, employment and temporary financial support before arrears arise.

Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Energy, Trade and Industry (Trade), and Chairman of MAS:

1. MAS’ latest financial sector stability stress test estimates that the vast majority of borrower households with housing loans from financial institutions (FIs) would remain resilient under a severe adverse scenario involving a significant rise in mortgage rates, and a sharp reduction in income. The results also indicate that under the severe shock scenario, around 1% of these borrowers could face cash shortfalls, whereby their overall monthly expenditures exceed income, and they are unlikely to have sufficient savings to cover these monthly shortfalls. This vulnerable group is estimated at around 4,000 households. The share of these vulnerable households has remained relatively stable across the annual stress test exercises. These numbers are not estimates of households currently under stress, but of those who could come under stress if a severe adverse shock scenario were to come to pass.

2. MAS and other agencies have established several avenues to support borrowers facing, or at risk of, repayment difficulties:

a. FIs monitor borrowers' repayment performance and engage those showing signs of financial stress early, offering assistance tailored to borrowers’ circumstances. Borrowers who anticipate difficulty making repayments should approach their lenders early.

b. For HDB homeowners who fall behind on repayments, they can approach HDB if they obtained HDB financing, or banks if they obtained bank financing, to discuss loan restructuring. HDB may also be able to assist with referrals to appropriate social service agencies.

c. Borrowers already in debt repayment difficulties may also approach Credit Counselling Singapore (CCS), which provides financial counselling and debt management guidance.

3. Given that the macroeconomic outlook remains highly uncertain, including for global and domestic interest rates, households should continue to exercise prudence in taking on debt and maintain adequate savings buffers against economic uncertainties.

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