Cause for concern: Malaysia’s household debt is still rising and high by regional standards, at around 89 of gross domestic product.
KUALA LUMPUR: The decision to grant lending licences to property developers can add to the risks associated with rising household debt, says Fitch Ratings.
The scheme is likely to encourage unregulated lending to households with weak financial profiles and undermine the strength of the financial system if not implemented prudently, it said in a statement.
