Is the next financial crisis looming?

“A resumption of construction work for the East Coast Rail Link, Light Rail Transit 3 and other mega projects should pull productivity growth back up, starting from the third quarter this year,’’ said Pong Teng Siew, head of research, Inter-Pacific Securities.

The increasing pace of US rate hikes and fears of a global slowdown are fuelling growing concerns over the next financial crisis.

This time, the trajectory suggests a crisis similar to the emerging market (EM) crisis of 1997/98, which centered on Asian EMs. Debt-fuelled economies are most at risk, especially those with high corporate debt denominated in US dollars while rising household debt can be another stranglehold. Global debt has hit US$240bil, an increase of 43% from 10 years ago.

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Business , plain speaking


Next In Business News

CPO futures likely to trend lower next week
Oil ends week lower as demand concerns face Russia supply ban
CapBay empowers SMEs, offers investment opportunities
BFood aims higher amid rising competition
Bearish stance on bonds and currency
Steady outlook for luxury condominium segment
No major change in salaries
Short position: Narrowing of valuation discounts, Food for thought
Long way to go for Malaysian carbon market
CEO shares insights into group’s outlook

Others Also Read