S&P warns of Malaysia’s household debt

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Malaysia bank tellerRating agency Standard & Poor’s  has said that Malaysia’s rising household debts, while still manageable in this current economic condition, would be “problematic” if the country’s growth rate slows in the future, The Star reported.

A study by the World Bank identified Malaysia and Thailand as having the largest household debts as a share of GDP among Asia’s developing economies. Household debts in Malaysia have now exceeded 80 per cent of GDP, prompting the government to introduce measures to curb credit growth.

S&P last month cut its credit outlook for four Malaysian banks on concerns that rising home prices and household debt are contributing to economic imbalances.

“Thailand and Malaysia economies are fine at this point in time,” S&P financial rating services’ managing director and lead analytical manager Ritesh Maheshwari said.

“But an unfavourable global economic event could affect Malaysia adversely, and this is why we have been highlighting in our reports that Thailand and Malaysia face risks,” he said.

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Reading Time: 1 minute

Rating agency Standard & Poor’s  has said that Malaysia’s rising household debts, while still manageable in this current economic condition, would be “problematic” if the country’s growth rate slows in the future, The Star reported.

Reading Time: 1 minute

Malaysia bank tellerRating agency Standard & Poor’s  has said that Malaysia’s rising household debts, while still manageable in this current economic condition, would be “problematic” if the country’s growth rate slows in the future, The Star reported.

A study by the World Bank identified Malaysia and Thailand as having the largest household debts as a share of GDP among Asia’s developing economies. Household debts in Malaysia have now exceeded 80 per cent of GDP, prompting the government to introduce measures to curb credit growth.

S&P last month cut its credit outlook for four Malaysian banks on concerns that rising home prices and household debt are contributing to economic imbalances.

“Thailand and Malaysia economies are fine at this point in time,” S&P financial rating services’ managing director and lead analytical manager Ritesh Maheshwari said.

“But an unfavourable global economic event could affect Malaysia adversely, and this is why we have been highlighting in our reports that Thailand and Malaysia face risks,” he said.

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