Ekonomi Malaysia akan mengalami kemelesetan (Bubble) tidak lama lagi - Forbes.com

Ekonomi Malaysia akan mengalami kemelesetan (Bubble) tidak lama lagi - Forbes.com

---

detail:forbes
Author: I am an economic analyst and anti-economic bubble activist who was recognized by the London Times for predicting the Global Financial Crisis. I am currently warning about growing bubbles in Canada, Australia, Nordic countries, China, emerging markets, Web 2.0 startups, U.S. higher education, and more. I believe that the popping of these bubbles will cause the next financial crisis.




Malaysian Minister for International Trade and Industry, Mustapa Mohamed

Quote:

The report received a favorable response from Lim Guan Eng, the Chief Minister of the State of Penang, who said in a press statement, “Even renowned financial analyst Jesse Colombo wrote in the Forbes online magazine that Malaysia’s economic bubble will burst due to its high government and household debt.”

Quote:

The report also struck enough of a raw nerve that Malaysia’s International Trade and Industry Minister Datuk Seri Mustapa Mohamed refuted my assertion that the popping of China’s precarious bubble economy will also pop Malaysia’s bubble in a press conference in Kuala Lumpur, saying “The Chinese economy is not going to tumble. It’s going to stay strong. We’ve seen high growth in China for many years.” “Malaysia is not going to be adversely affected. Anyway, we are focusing more on domestic resources growth and it’s becoming more relevant in this context,” he added.

This image has been resized. Click this bar to view the full image. The original image is sized 984x708.

The Kuala Lumpur Composite stock index rose 120 percent, aided by growing interest from foreign investors:

This image has been resized. Click this bar to view the full image. The original image is sized 710x325.

Malaysia Is A Classic Credit Bubble Story

Malaysia’s $303 billion economy has been growing at an average 6 percent rate in recent years due in large part to a growing government and household credit bubble.

This image has been resized. Click this bar to view the full image. The original image is sized 710x325.

This image has been resized. Click this bar to view the full image. The original image is sized 710x325.

It’s no surprise to see an inflating household debt bubble when Malaysia’s bank lending rate is at record lows:

This image has been resized. Click this bar to view the full image. The original image is sized 710x325.

Ultra-low interest rates have caused Malaysia’s private sector loans to increase by over 80 percent since 2008:

This image has been resized. Click this bar to view the full image. The original image is sized 710x325.

Malaysia’s M3 money supply, a broad measure of total money and credit in the economy, shows a similar worrisome trend:

This image has been resized. Click this bar to view the full image. The original image is sized 710x325.

Malaysia Also Has A Property Bubble

Accounting for nearly half of all household debt, soaring mortgage loan growth is a primary reason why Malaysia’s household debt is increasing at such a rapid rate.