Sale of bad debt by banks forecast to rise

PETALING JAYA: More non-performing loans (NPLs) are expected to be sold by banks or outsourced to debt management companies over the next few quarters, as customers struggle to pay up loans amid a tough economic environment.

Debt management firm Collectius Malaysia country managing director Leong Yam Meng told StarBiz the reason for the sale and outsourcing of collections of NPLs is due to the lifting of the loan moratorium that was put in place by Bank Negara about a year ago.