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Dear Editor,

"Who's Most in Debt?" (The Chartist, 15 Aug) listed Singapore as the eighth-most-indebted developed country. It is true that Singapore's debt equals about 95% of its GDP but the country is a net creditor, not a net debtor. The government has financial reserves well in excess of its liabilities.

Under the Constitution, proceeds from the government's borrowings cannot be used for spending. The government issues domestic debt securities purely to develop the bond market and to meet the needs of the Central Provident Fund, Singapore's national pension fund.

That is why international rating agencies like Moody's, Standard and Poor' and Fitch give Singapore an AAA sovereign rating.

Lim Bee Khim
Director, Corporate Communications
Ministry of Finance
Singapore

For more information on Singapore's Government debt, please click here.