SINGAPORE, (Reuters) – The central bank of Singapore urged banks Monday to be resilient to shocks in the event of an unexpected rise in unemployment or business insolvencies caused by the COVID-19 pandemic.

MAS’s annual review of financial stability stated that although the outlook for the economy has improved in recent months, there was still a chance of a significant decline in individuals and businesses’ ability to repay their debts.

“Unemployment could rise suddenly ……banks must therefore remain cautious in managing their cash balances, in order to ensure their capital position remains robust and resilient to shocks while they support the economy in the later stages of recovery from the pandemic,” MAS stated.

With the recent emergence of the new COVID-19 variant Omicron, Singapore has held off on further reopening plans https://www.reuters.com/world/asia-pacific/singapore-hold-off-further-reopening-evaluate-omicron-variant-2021-11-30. Singapore’s coronavirus taskforce stated that it would be reviewing the Omicron variant and making any other moves.