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Much ado about nothing? Understanding Singapore’s high gross public debt

Tee Koon Hui
Tee Koon Hui • 4 min read
Much ado about nothing? Understanding Singapore’s high gross public debt
Policymakers must remain committed to Singapore’s principles of robust fiscal governance, forward-looking fiscal planning and prudent resource management / Photo: The Edge Singapore
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Singapore’s gross public debt stands at around 170% of GDP — among the highest of advanced economies. Among the OECD countries, only Japan’s debt is higher at around 220%, while Singapore’s debt exceeds that of Greece, Italy and the US.

Yet this striking headline figure has not triggered financial market concerns or ratings downgrades. Singapore has consistently maintained its top-tier AAA sovereign credit rating.

This paradox — high gross public debt without fiscal stress — can be explained by three structural features that fundamentally distinguish Singapore’s public debt from most advanced economies.

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