A country’s debt position is commonly measured by its gross debt-to-GDP ratio, which compares a country’s public debt to its economic output. While Singapore’s gross debt-to-GDP ratio may appear large on its own, it does not consider Singapore’s sizeable asset position. Looking only at the liabilities (i.e. debts) alone does not discriminate between two countries with the same level of debt but with very different levels of assets.

In fact, the Singapore Government has a strong balance sheet with no net debt. Our financial assets are well in excess of our debt. This net asset position is reflected in the net investment returns generated on our reserves, which is made available for Government spending via the Net Investment Returns Contribution. In addition, our strong balance sheet explains why Singapore receives the top credit rating of AAA from the three leading international credit-rating agencies (S&P, Moody’s, and Fitch).

Read more information on Government borrowings.