Malaysia an economy on stilts on a tightrope, says ANZ

KUALA LUMPUR – ANZ Bank believes that of all the countries in ASEAN, Malaysia is currently the most vulnerable to a turn in the credit cycle, given its significantly higher debt service ratio compared to regional peers. “Malaysia is also caught in a confluence of unfavourable demand and supply dynamics; a bleak growth outlook and tighter liquidity have shifted the demand and supply curves inwards respectively,” ANZ says.

“Malaysia’s precarious situation is also exacerbated by a large increase in leverage.