South-East Asian property market carries growing risks

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Among other things, this Oxford Analytica report (link above) says:

South-east Asian banks will be tested as the eventual end of quantitative easing affects local currencies, capital flows, financial asset prices, borrowing costs and repayment capabilities of corporate and household borrowers. A rise in interest rates and cost of borrowing could prompt a surge in bad loans.

This risk is particularly acute for property markets (rather than productive sectors) in such economies as Malaysia, Thailand and Singapore, where prices are at record levels, affordability is over-stretched, household debt stands at around 80% of GDP and debt service ratio is high.

This piece was first published by Oxford Analytica in its Daily Brief on 21 February 2014 and is duly acknowledged.

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Don Anamalai

Nurul Izzah: Many Malaysian Will Fall Under The Poverty Trap:

Yuk Lo

Harry Dent’s 2014 Prediction: The Next Great Bubble Bursts
http://www.youtube.com/watch?v=eE9uhl65YZc

The greatest confluence of down-cycles since the 1930s is just ahead. The next great bubble will bursts in 2014. Harry outlines what will happen each quarter of 2014.

Yang

Every year you will hear the prophets of doom. They are to scare you so they can pick up cheap properties and stocks. The worse are the political prophets of doom from the oppositions from PR DAP, PKR, PAS Anwar, LGE that have been prophesizing the doom of our country day in day out for the past decades so they can get support from the naive and gullible. Even MH370 is not spared. ……. Are we not better off than before ..!!!!!!!