Read this carefully and you will realise who is helping to finance the fat profits of the developers and the banks.
While developers and banks post huge profits, households are groaning under the weight of debt from housing loans and personal credit card loans. Hey, that’s us. Second highest in Asia. Do we get a prize?
This excerpt from Reuters:
Malaysia, Singapore and Thailand all have debt-to-GDP ratios above 70 percent. Malaysia’s ratio stands at 86.8 percent, up from 60.4 percent in 2008, and the second highest in Asia after South Korea’s 91.1 percent.
More than half of the burgeoning household debt comes from housing loans, while personal and credit card loans account for 21 percent. It has helped drive a real-estate boom in parts of the country, with national house prices up 11.9 percent last year and Kuala Lumpur prices surging 30 percent in three years.
In contrast, the average monthly Malaysian household income rose about 7 percent annually from 2009-2012.
Only 7 per cent. No wonder we can barely keep up with rising food and housing prices.
Thanks to blog reader Don Anamalai for the link.