atans1

S’pore, Asia, West hsehold debt levels compared

In Energy, Indonesia, Malaysia on 09/11/2013 at 7:00 am

Asean round-up

S’pore (at 61% of debt to GDP) is third in Asean, M’sia tops the list (81%), followed by Thailand (68%) , according to a World Bank report. (http://www.economist.com/news/economic-and-financial-indicators/21588882-household-debt-asia)

A recent World Bank study identified Malaysia and Thailand as having the largest household debts, as a share of GDP, among eastern Asia’s developing economies. In Malaysia, where household debt now exceeds 80% of GDP, the government has been seeking to curb credit growth. Thailand’s government boosted access to credit following the country’s big floods in 2011. The recent slowing of growth in many Asian economies raises concerns about the sustainability of all this personal debt.

Note two weeks ago, I reported Currently, M’sia‘s household debt stood at about 83% of gross domestic product. Household debt in S’pore now accounts for 75% of gross domestic product, having doubled in the last 13 years. According to Standard Chartered, a private bank, household borrowing as a share of national income now stands at 68% of Thailand’s GDP, much higher than in bigger Asian countries, such as China (20%), India (18%) and Indonesia (17%).

(Related post: https://atans1.wordpress.com/2013/07/28/the-maths-of-salaries-when-mortgage-rates-rise-50/)

In other Asean news

Indonesia‘s economy expanded at its weakest rate in four years in the third quarter as a result of slowing exports and subdued domestic demand.

Its economy grew 5.6% in the July-to-September period from a year earlier, down from 5.8% in the previous quarter.

Indonesia’s exports have been hurt by slowing demand from key markets and a drop in commodity prices.

Meanwhile, domestic demand has been impacted by rising fuel prices and rising interest rates.

Fuel prices in the country surged earlier this year after the government removed its subsidy programme.

Petrol prices went up by 44% while diesel prices rose by 22%, leading to higher transportation costs and electricity bills.

http://www.bbc.co.uk/news/business-24831172

And as usual Indonesia is repenting the nationalistic policies it always implements when the economy is doing well. It is again, as usual, lifting restriction on foreign investments, to attract foreign capital.

Thais are in the streets, protesting a controversial amnesty bill. http://www.economist.com/blogs/banyan/2013/11/unrest-thailand

And an energy boom in the region. http://www.thefinancialist.com/an-oil-and-gas-boom-for-southeast-asia/

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  1. Singapore is in a different league from our ASEAN neighbours,it is more meaningful to compare with the OECD countries.
    http://www.oecd-ilibrary.org/economics/household-wealth-and-indebtedness_2074384x-table18

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