The capital inflows to Singapore have receded and moved back to some major markets since late 2011, Minister of State for Defense and Education Lawrence Wong said on Monday.

Wong was responding to questions raised by a lawmaker on whether there are destabilizing capital inflows, local broadcaster Channel NewsAsia reported.

The impact of money flows to the property market has been a source of concern for Singapore, and the government has taken steps to address it. The financial sector is sound and its financial markets have been able to intermediate large capital flows so far, it said.

Wong said authorities will continue to monitor closely the impact of capital inflows on the Singapore economy, especially the asset markets, to ensure that they do not threaten the financial system or property market.

"We cannot rule out Singapore seeing a resurgence in short-term capital inflows given strong macroeconomic fundamentals," he said.