Singapore Business Review (April-May 2016)

Page 16

FIRST NUMBERS

riskiest roadways On the road again

Fast facts on car accidents in Singapore Based on Aviva’s car insurance claim stats, Jan - Dec 2015.

? ow that... Did you kn

1 in 10

More than accidents happen before the driver has even left the car park.

23%

Another happen on expressways. (That’s almost 1 in 4 accidents!)

Be extra ca reful alon g these ro ads

10

The most accident-prone roads in Singapore are:

Capital outflows are a threat

Braddell Road

A banking crisis brews in Singapore

I

f China’s economy experiences a hard landing, then Singapore’s three largest lenders will suffer massive capital outflows. A hard landing in China will trigger a crisis of global proportions with Singaporean banks caught in the eye of the storm, claims Swiss billionaire investor, Felix Zulauf. “Singapore, which has attracted a lot of foreign capital over the years because of its image as a strong-currency state, will be extremely exposed to the situation in China. Banking-sector loans have grown dramatically in the past five or six years. Singapore is now losing capital, which means the banking industry is losing deposits,” Zulauf says. Exaggerated threat However, analysts and policymakers have panned Zulauf ’s idea, saying that the city-state’s three largest banks are wellcapitalised and should be able to survive even a severe shock in the global economy. “We couldn’t reconcile Zulauf ’s observations with official industry statistics released by [the Monetary Authority of Singapore]. Contrary to Zulauf ’s views, our three local banks are well capitalised,” says Jonathan Koh, equity analyst at 14 SINGAPORE BUSINESS REVIEW | MAY 2016

Alexandra Road

Balestier Road

UOB Kay Hian. In its latest Financial Stability Review, the MAS said that though there are signs of increased credit risks, banks have ample capital buffers which act as safeguards against the turning credit cycle. “Singapore’s banking system remains resilient amid an uncertain external environment. Banks have strong capital and liquidity buffers to withstand severe shocks but continued vigilance is warranted,” it said. “We couldn’t reconcile Zulauf ’s observations with official industry statistics.We do not want to downplay the current slowdown in economic growth in Asia. However, we do feel that Mr Zulauf has over-exaggerated the weaknesses in Singapore’s financial system,” Kho notes.

Bukit Timah Road Clementi Road Lornie Road Thomson Road Upper Serangoon Road Upper Thomson Road Yio Chu Kang Road

Though there are signs of increased credit risks, banks have ample capital buffers.

? You got hit where The most common types of accidents we get into:

48% toFront rear 19% toFront side 16% Chain collision 13% Side swipe

7% While reversing Here’s your bill... What we claim for most

62% Third-party damage 38% Own damage Who says she can’t drive? Males are

1.4x more

likely to get into than females.

an accident

your weekend? Rushing to start

48% of accidents on

SG bank’s new NPL formation doubled in 2H15

Fridays occur during the post work rush (5.30-8pm). Comparatively, on Mondays, only 26% occur during the post-work rush.

Mind boggled? Keep your eyes on the road and while you’re at it, make sure you’ve got good car insurance! Call 6827 9953 or visit aviva.com.sg to quote and buy instantly today. Aviva Ltd 4 Shenton Way #01-01 SGX Centre 2 Singapore 068807 www.aviva.com.sg Company Reg. No.: 196900499K GST Reg. No.: MR-8500166-8

Source: Company data, RHB

Source: Aviva Singapore


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