Singapore to be in the thick of US rate concerns

It's a little different from last summer.

It is suspected Singapore will be at the centre of US rate concerns unlike last summer.

According to a research report from UBS, Singapore has high leverage, a loan to deposit ratio of roughly 110% and strong credit growth increasingly not supported by deposit growth.

The report also said that Singapore has a completely open capital account where interest rate arbitrage pressures could lead to deposit outflows.

Here's more from UBS:

Furthermore, our colleagues on the property team project a surge in excess housing just as US rates start to rise.

Yes, we think Indonesia and a few others in region will likely find a rise in US rates challenging.

But if you're looking for something a little different this time around Singapore is a good candidate, in our view.