Skip to main content

Featured Post

Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec

Thailand's Household Debt Declines Slightly Amid Tightened Lending and Economic Measures

Thailand's household debt has seen a minor reduction in the second quarter as banks implemented stricter lending practices to manage bad loans and borrowers stepped up debt repayments amidst the highest interest rates in a decade.

As of June, household debt, as a percentage of the country's Gross Domestic Product (GDP), stood at 89.6%, down from 90.7% in the previous quarter. This equates to a total liability of 16.32 trillion baht ($507 billion), slightly decreased from 16.36 trillion baht in the first quarter, according to data released by the Bank of Thailand.

More than 75% of this household debt is attributed to loans for personal consumption and mortgages.

Government Initiatives for Debt Restructuring

Prime Minister Paetongtarn Shinawatra has committed to implementing a comprehensive debt restructuring plan to address the ongoing household indebtedness as her new administration introduces measures aimed at stimulating Thailand’s sluggish economy. The central bank has highlighted the highest household debt levels in Southeast Asia as a key reason for maintaining interest rates at 2.5%, the highest level since 2013.

Since 2019, Thailand's household debt has surged nearly 20%, exacerbated by the economic fallout from the COVID-19 pandemic. To alleviate the burden, the government is distributing 10,000 baht in cash to approximately 14.5 million individuals who are poor or disabled, helping them cope with the rising cost of living.

Trends in Lending and Economic Impact

The slight decline in the debt ratio has been attributed to both loan repayments and a slowdown in credit growth among commercial banks. Chayawadee Chai-Anant, Assistant Governor of the Bank of Thailand, noted that a 2.3% GDP growth in the second quarter also contributed to reducing the debt ratio.

In response to rising defaults, Thai banks have adopted a more cautious approach to granting new loans, particularly for automobile financing. New loan growth decreased to 0.3% in the second quarter, down from 1.3% in the prior three months. The Bank of Thailand has also indicated concerns about a potential rise in non-performing loans as both small businesses and individual borrowers face challenges in meeting their repayment obligations.

As the government and central bank work to navigate these economic challenges, the focus remains on stabilizing household debt levels while fostering a more robust economic recovery.

Comments

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat

3M Raises Profit Forecast After Beating Quarterly Estimates on Electronics Demand

3M Co raised the lower end of its full-year adjusted profit forecast after strong demand for electronics and industrial products helped the company surpass quarterly profit expectations. Shares of 3M were up 4.2% at $140.5 in pre-market trading. An increase in demand for electronics used in vehicles and mobile phones boosted profits for the company, which had previously faced challenges as high inflation led consumers to delay major purchases. The industrial sector is also expected to benefit from the recent US Federal Reserve decision to cut borrowing costs in September, encouraging more consumer spending. 3M has implemented cost-cutting measures, including job reductions and spinning off its healthcare business, to counter the impact of a demand slowdown . Key highlights from the report: Sales in the transportation and electronics segment grew 1.8% year-on-year. Sales in the safety and industrial segment , which produces adhesives for industrial use, increased by 0.5% . 3M&

Key Corporate Updates from Malaysia

Ekovest Bhd : Major shareholder Tan Sri Lim Kang Hoo is considering selling his toll-road business, Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), for up to RM5 billion. Ekovest owns 60% of Kesturi, with the remainder held by the Employees Provident Fund (EPF). Eco World Development Group Bhd : Through its subsidiary Mutiara Balau Sdn Bhd, EcoWorld is acquiring 847.25 acres in Semenyih, Selangor for RM742.41 million to develop Eco Forest 2, a project with an estimated RM4.6 billion in gross development value. Mah Sing Group Bhd : Mah Sing has purchased 5.24 acres on Old Klang Road for RM113 million to build M Aurora, a transit-oriented development with an estimated RM660 million gross development value, anticipated for launch in early 2025. Pentamaster Corp Bhd : The company’s third-quarter net profit dropped 49.9% to RM11.77 million, impacted by lower sales in its automated test equipment division and foreign exchange losses. Sentral REIT : The REIT saw a 25