Malaysia in debt II

CP TEH

Publish date: Sun, 24 Mar 2013, 07:04 PM

I was reading this week's The Edge this morning ... and this article worth reading. Well, I have turned into buying Focus for past weeks, rather than The Edge but this week article sound interesting.

"Malaysia's household debt-to-GDP ratio climbed to 80.5% last year from 75.8% the year before, making it one of the five most heavily indebted countries in Asia. Such high household debt could be a major threat to the economy should it falter, say economists."

Also read : http://www.themalaysianinsider.com/malaysia/article/credit-bubble-imminent-as-malaysias-household-debt-rises

From Wiki : Household debt is defined as the amount of money that all adults in the household owe financial institutions. It includes consumer debt and mortgage loans. A significant rise in the level of this debt was a cause of the U.S. and European economic crises of 2007-2012. Several economists have argued that lowering this debt is essential to economic recovery in the U.S. and selected Eurozone countries.

CAP : Now you know why many Malaysians don't feel so well off, with this level of household debt. About half our disposal income goes to servicing debt. What are some of the factors driving the high household debt/disposal income ratio?

-High growth in consumer-driven spending
-Low interest rates encourage borrowing
-Ease credit by banking institutions due to financial liberalisation (translating into fat profits for the banks?!)
-Rising house prices especially in KL and Penang where the average house price to average income ratios are much higher
-and of course, low income/wages.

So, are we worry? We all should. With 16th years of DEFICIT budgets, our gov is bankrupting our country, and majority of Malaysians do not even know about it.

BR1M ... sigh ... it is like we ourselves in great debt, but we borrowed more money to give to others, to please them ... and gain popularity. One needs not to be an economist to understand the impacts. While many Malaysians 'happily' receiving the free money, many immigrants-turn-malaysians also queued to get the free-money, given generously by our gov ... well, with obvious reason : ELECTION.

Down-grading of Malaysia's debt rating

This is an old-clip ... but still a good reminder to ALL Malaysians. It is difficult as majority of Malaysians are ignorants.

Wake up, Malaysians.

Be educated.

TEH

Discussions

Be the first to like this. Showing 18 of 18 comments

sukh1230

This seems to be worrying

2013-03-24 22:50

super911

Thanks to the government that rob rakyat.

2013-03-24 22:58

AlbertLim

Dear Mr Teh,
you are only raising this topic not to create awareness. You are just trying to raise popularity of dwindling blog of yours. I think I know how you work Mr Teh.
Do you ever sit down & think our govt giving out millions or billion as BRIM without taking into consideration how to cover or raise the money? They are govt & they would thot in deep about this. If they create debt just to give BR1M the truth will prevail as NOT all govt servants are BN supporters.
This is they are govt & you Mr Teh is one cunning old man who time after time trying hard to milk readers here with your innuendo. Time to give up Mr Teh.
By the way, do you know how much reserve our govt has right now? In the paper its written. I dont know if our govt is trying to bankrupt us or not... but as God as my witness, NO GOVT in this world would want to do it intentionally. Anywhere I am no economics or politician. So that part I reserve my comments.
i am only concern about you who working overtime to make people "like" your blog or join your cohort tratle or turtle.... heard many left recently? am I right?

2013-03-25 00:40

sense maker

The high household debt/ GDP is a real concern but not a surprise in a property up-cycle. The deficit our government runs has to be paid for one day by us and our next generation. It has to be scaled back into slight surplus within the next 10 years via stronger economic growth, higher taxes, new taxes like VAT or our government will risk having to pay higher interest on our government bond once foreign investors' interest or confidence in Malaysian economy wane. So, it is "spend now pay later" strategy of our government. Fiscal implosion will cause social upheaval. Just like at Greece, Cyprus and many European countries. A well-run economy is Germany's that run budget surplus and save money for the future generations. God bless Malaysia.

2013-03-25 01:35

shirley1

if talk about country debts, I dare not comments.. if talk about household debts, I think la just do some health check on ur debts, like whether ur debts is backed by some tangible assets can appreciate or generate income, like property and etc.. maybe we could consider insurance as protection too :)

2013-03-25 07:41

shirley1

Teacher, for a normal rakyat living on the street, when they buy a property.. what they need to consider ? small ? GDP they should consider too.. haha.. control credit card usage and property speculation .. I think central bank implemented some regulations .. how come not working one teacher... oh.. I forgot, you learning how to goreng property too. you help to contribute to the percentage too..

2013-03-25 08:28

lotsofmoney

The world would be better off without politicians.

2013-03-25 10:43

tc2012

The world is misery because of many half past six politician especially in bolehland

2013-03-25 11:20

chongkonghui

We have many ignore and ignorance.

For Mr. AlbertLim's comment, sound like he means "Government always do the right things (and probably do the thing right)."

Which I don't quite agree.... Mr. CP Teh may be trying and working hard for reader's support but I don't see fabrication of facts or twisting of truth...

2013-03-25 11:43

Peter Lee

believe in cp teh and chongkonghui,malaysia are on the way to bangkrupt nation list

2013-03-25 12:31

necro

http://cpteh.blogspot.com/2013/03/financial-freedom.html

2013-03-25 12:37

shirley1

sorry huh.. twisting the fact ? .. still talking bout household debts rite .. be educated on managing ur household debts .. is this the objective?

2013-03-25 12:49

shirley1

believe me, even though I dislike politics, I don't like corrupted politician and I will support you guys. :)

but I don't like ppl with no integrity like some politician, see human talk human, see ghost talk ghost.

2013-03-25 13:21

AlbertLim

If Govt wants to screw us all then they wont last long that is what I meant... I am NOR politicians or economics so I cant comment much. As for house hold debts yes we can manage on our own with out govt help. If we ballon our household debts then its our fault NOT govt. Again all this sheet is for us to come & read mr Teh's blog la... he needs the traffic for his blog & need more FRESH MEAT for his cohort tratle & turtle... why cant you all understand that... I heard there is one Doctor in his group... who never share his call but all the sudden will come out say I sold this I sold that for profit.... hahaha ( IS THIS SHARING???? ) Mr Teh been fooling us all this while time to end his game !!!

2013-03-25 14:37

shirley1

haha from wiki too:

Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one's actions. Integrity can be regarded as the opposite of hypocrisy, in that integrity regards internal consistency as a virtue, and suggests that parties holding apparently conflicting values should account for the discrepancy or alter their beliefs.

The word "integrity" stems from the Latin adjective integer (whole, complete). In this context, integrity is the inner sense of "wholeness" deriving from qualities such as honesty and consistency of character. As such, one may judge that others "have integrity" to the extent that they act according to the values, beliefs and principles they claim to hold.

2013-03-25 16:14

shirley1

You teach ppl not to belittle others, your general statement . "It is difficult as majority of Malaysians are ignorants." belittle the whole nation.

so who is there to serve our country ? do not how to write dont write la.

2013-03-25 16:53

AlbertLim

good one Shirley... many reader here think that he is good he is humble he very kind & sincere in helping retailers... but the fact is HE IS A CUNNING OLD MAN who tricked many into joining his stock watch Cohort Tratles or Turtles.... then milk our money away... then we dont pay him he kick us out... you want to chat also you may pay ma.... He is money minded man...
Everything others do it is wrong... only his method is correct. Belittle criticize others so people can believe him... why many readers here so damn ignorant ?? no wonder many lose money in market.... Come on guys wake up pls... BOYCOTT Mr Teh pls !!!! He & one senior trader or remisier cohesive to dupe us all.... I will find out who is this senior trader or remisier more so we can be aware. They are into business together this stock watch cohort & tratles.... this is what I was told by his tratle... who is so damn pissed because he/she lost many trade recently following Mr Teh's call ( or was it Mr Teh or the other person)...
Pls beware ... you've been warned ....

2013-03-25 17:10

shirley1

sorry huh.. i really beh tahan la, base on my guess, this guy maybe got business partner one cuz i thik he no guts one to run on his own.. tell me huh after find out, jus one to know i guess correctly .. haha anyway guess wrongly i also ok as his human value is bankrupt one.. woof woof

2013-03-25 22:05

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