Credit seen not crunching... yet

PETALING JAYA: Despite growing concerns that Malaysia may fall into a credit crunch trap, economists are not waving red flags yet as the country’s fundamentals are still intact.

Economists contacted by StarBiz said although to an extent there are some signs of a credit crunch, on the whole, it is still remote, judging from the absence of any liquidity disruptions and the country’s non-dependence on the inflow of hot monies amid the current low US interest rates.