Concerns over Asia’s rising debt on US rate hikes

SERC seems to be the most bullish to date, with its executive director Lee Heng Guie(pic) saying Malaysia

WITH Asia being a major contributor to world growth, its potentially rising debt on expected US rate hikes is a cause for concern as that may be a further drag on its long-term prospects.

“A prolonged period of low interest rates as well as easily available credit in both advanced and emerging economies had lead to rapid debt build-up in parts of Asia. The resultant debt build-up to prop up global growth is now unravelling at the time when global interest rates have risen.