Number of bankruptcy orders relatively 'stable' in first half of 2024

Slightly over two-fifths of the bankruptcy orders in the first half of 2024 were due to business failures, with debtors borrowing from various sources including banks, credit card issuers, licensed moneylenders and private individuals.

- Zenith Wong

This was stated by Minister of State for Trade and Industry and Monetary Authority of Singapore (MAS) board member Alvin Tan in Parliament on Oct 16.

He was responding to two questions by Mr Derrick Goh (Nee Soon GRC) and labour MP Melvin Yong (Radin Mas) on the causes for the rising number of bankruptcies in Singapore.

Mr Tan clarified that the number of bankruptcy orders in the first half of 2024 has been “stable” compared with the same period in previous years, despite a higher number of applications.

The number remains below pre-pandemic levels.

He said: “Not all bankruptcy applications result in bankruptcy orders, as applications may be withdrawn for various reasons, such as if the debtor settles the debt or enters into a debt repayment plan with the creditors.”

The delinquency rate for corporate non-performing loans (NPLs) stood at about 2 per cent in the second quarter of 2024. NPLs account for less than 1 per cent of all loans extended to individuals by financial institutions.