KUALA LUMPUR (April 17): About 52.4% of attendees at Moody’s conference in March were more worried about household leverage than corporate debt, while an additional 26.2% were concerned about both, Moody’s says in report.
* About 9.5% more concerned about corporate debt than household, while 11.9% saw neither posing a concern as risks were receding
* “Despite structural improvements, we still consider that household leverage represents a significant tail risk for Malaysian banks, in case of a sharp deterioration in employment conditions or a fall in property prices,” report says
* 63.4% expected credit outlook to remain stable in 12-18 months, while 14.6% saw it weakening and 12.2% expected improvement
* Trade protectionism was seen as top downside risk to region by 41.5% of participants, while another 41.5% saw unexpected tightening in funding conditions as the main risk
** China slowdown cited by 9.8% and geopolitics by 7.3%
* Attendees represented 23 local and foreign financial institutions, with 55% of them identifying as investors, 19% as intermediary and 10% as issuers
* NOTE: Both Malaysian Coalitions’ Pledges to Boost Consumption: Moody’s