Total outstanding corporate debt reached S$617 billion, driven by financial institutions and favourable rate conditions.

The Monetary Authority of Singapore (MAS) reported that total corporate debt issuance in Singapore exceeded S$300 billion for the first time in 2024, rising 34% year-on-year to S$308 billion. The record volume was underpinned by lower interest rates, tighter credit spreads, and sustained demand from financial institutions. Outstanding corporate debt rose 9% to S$617 billion at the end of 2024, MAS confirmed in its annual corporate debt market development report. The managing director of MAS, Chia Der Jiun, noted at the MAS Annual Report media conference in July 2025 that the corporate debt market "registered strong growth in 2024, with total issuance increasing more than 30% from the previous year," corroborating the headline figure. Growth was broad-based across financial institutions, corporates, and statutory boards, supported by the interest rate environment and credit spread compression that persisted through much of 2024.

Composition of Issuers and Instruments

Financial institutions dominated issuance activity in 2024, accounting for 54.2% of total corporate debt arranged or co-arranged in Singapore. Corporations excluding the property sector represented 41.8% of issuance, while special purpose vehicles—spanning corporate, reinsurance, and financial institution structures—comprised the remaining 4.0%, according to MAS data. In the SGD market, growth was broad-based across all issuer categories, supported by lower domestic interest rates and tighter credit spreads that made funding conditions more attractive. In the non-SGD market, financial institutions drove issuance volumes, fueled by the need to finance asset book growth. Singapore continued to function as an attractive funding destination for global corporates with operations in the country, with MAS reporting that the city-state's deep debt capital markets ecosystem—including over 40 international and regional banks' debt capital markets teams—facilitated deal flow.

%Source: Orionmano Industries

Growth of Digital Bond Issuance

Digital corporate bond issuance in Singapore reached approximately USD 2.5 billion as of the end of 2024, from a diverse range of issuers including corporations, financial institutions, and special purpose vehicles. While MAS characterised digital bond adoption as still "early-stage relative to traditional bond markets," the regulator noted the technology's potential to enhance efficiency and lower costs for issuers. To accelerate mainstream adoption, MAS launched the Global-Asia Digital Bond Grant Scheme (G-ADBGS) in 2025, offering up to SGD 450,000 per issuance to defray costs associated with digital bond listings. The grant scheme is designed to promote digital bond issuances in Singapore and facilitate broader market participation, though initial uptake is expected to be measured as market participants evaluate the operational and regulatory frameworks.

Outlook

Supported by MAS initiatives such as the Global-Asia Digital Bond Grant Scheme and continued demand from global corporates with regional operations in Singapore, the corporate debt market is poised for further growth. However, headwinds from tightening global financial conditions warrant vigilance. MAS has flagged that it is placing increased emphasis on stress testing to assess domestic financial system stability, applying a more severe scenario in 2025 that includes "a sharp tightening in global financial conditions, alongside heightened financial market volatility, a trade shock and persistent elevated levels of policy uncertainty." While MAS's stress test findings indicated that Singapore banks have strong capital buffers and healthy liquidity profiles that should allow them to weather a global recession and tightened financial conditions for an extended period, the regulator noted that "segments of businesses and households that are more vulnerable should exercise vigilance." The trajectory of corporate debt issuance will likely remain sensitive to global interest rate expectations, credit spread dynamics, and the broader macroeconomic environment across Asia. As Singapore continues to serve as a regional debt capital markets hub, with more than 77% of funds managed in the city-state sourced from outside Singapore, the market's resilience will be tested against the backdrop of potential monetary policy tightening in advanced economies. The digital bond segment, while nascent, represents a structural growth vector that could enhance market efficiency and broaden the issuer base over the medium term.