Whilst bank loans grew 8%.
Singapore's money supply (M3) grew 4.1% YoY in December, which is slower than the 4.3% growth in November.
According to RHB Research's report, public demand for credit decelerated from 15% YoY in November to +8.2% in December, whilst private demand for credit inched lower from +3.7% to +3.6% during the same period.
In addition, net foreign position slowed to +5% YoY, further weighing on the headline figure.
Meanwhile, bank lending grew by 8% YoY in December, higher than the 7.7% climb in November.
Corporate loan demand rose 9.3% YoY in December, stepping up from +8.8% in the previous month.
Financial and business services loans advanced 33.1% and 4.9% YoY, accelerating from readings of +28.1% and +1.6% respectively the month before.
Meanwhile, manufacturing and general commerce sectors slowed, whilst logistic sector loans declined at a faster pace, capping some of the upside.
Consumer loans climbed 4.6% YoY, inching lower from a 4.7% rise the month before. Share financing slowed down, offsetting a pick-up in mortgages and car hire purchases.
RHB expects M3 to accelerate to +6.2% in 2018, from 4.1% in 2017.
"This is premised on a strong SGD, rising economic prospects, and a pick-up in property transactions," RHB said.
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