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NEWS
ECONOMY | Staff Reporter, Singapore
Published: 14 Sep 12
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The problem of ageing population in Singapore and Hong Kong is more serious than we thought

Savings ratio in Singapore now stood at 41% from 48% in 2007 and the story is even worse in HongKong.

From a peak of 34% in 2007, HongKong's savings' ratio is now down to 25%.

Click the image to enlarge.

According to Morgan Stanley, following the credit crisis, saving has declined in Hong Kong and Singapore.

Morgan Stanley notes that apart from weaker export income, both these economies are also approaching a turning point in their demographics where the age dependency ratio (non-working to working age population) is deteriorating.

"The rising age dependency will be a structural headwind for these economies to maintain their level of aggregate saving. Hong Kong’s saving ratio has been declining significantly already over the last few years, leading Singapore; its age dependency trend is leading Singapore’s," it added

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Tags: ageing population in Singapore, ageing population in Hong Kong

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