Sign up | Log in



Home  >>   Daily News  >>   Malaysia News  >> Finance  >> Malaysia tightens household credit lendings
NEWS UPDATES Asean Affairs   8 July 2013  

Malaysia tightens household credit lendings

Malaysia's central bank has imposed measures on household lending, including limits to loan tenures, which economists on Sunday said will reign in "excessive" consumer borrowing and curb property speculation.

Bank Negara Malaysia said it will now only allow personal loans of up to 10 years while financing for both residential and non-residential properties will have a maximum payback term of 35 years.

Previously, consumers were allowed to apply for personal and property loans of up to 25 years and 45 years respectively.

The central bank also announced a ban on "pre-approved personal financing products" -- unsolicited loan and credit card offers -- effective immediately.

Although a longer loan term may reduce monthly repayments, it encourages "excessive debt accumulation" and saddles consumers with heavier overall debt burden, the central bank said in a statement on Friday.

Yeah Kim Leng, group chief economist with financial firm RAM Holdings told AFP that the "mild credit tightening" is designed to curb household debt from rising excessively.

"Some consumers are borrowing to the hilt. The government wants to slowdown excessive borrowings and curb property speculation," he said.

Household debt has expanded rapidly over the last five years, increasing by 12 per cent a year, the central bank said.

Wan Suhaimi Saidi, economist with Kenanga Investment Bank, described the measures as positive for the economy because it would prevent a "possible bubble burst" in the household debt if consumers continue to enjoy easy borrowings.

The central bank, however, said households who have the financial capacity to take on borrowings will continue to enjoy access to financing.

Yeah ruled out possible interest rate hike as this painful move will hurt growth in the export dependent country amid the weak global economy.

Malaysia's economy is expected to grow five to six per cent this year powered by strong domestic demand.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    8 July 2013 Subsribe Now !
• Bodhgaya temple in India attacked Subcribe: Asean Affairs Global Magazine
• Indonesia proposes meeting on asylum-seekers Asean Affairs Premium
• Indonesia sets up monitoring team for Indonesian citizens in Egypt
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• APEC, G20, and ASEAN chart way forward on connectivity
• Malaysia tightens household credit lendings
• Petroleum, metals key exports to Laos
• July electric bills to go down by P0.30 per kWh
Asean Analysis            8 July 2013 Advertise Your Brand
• Asean Analysis- July 8, 2013
• Asean Weekly: The Biweekly Update
Asean Stock Watch     5 July 2013
• Asean Stock Watch-July 5, 2013  

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand