China's debt crisis can be averted, says deputy BNM governor
Published on: Thursday, June 23, 2016
SINGAPORE: China's debt crisis can be averted if policy makers react pre-emptively and forcefully, says Bank Negara Malaysia Deputy Governor Dr Sukudhew Singh."They should deal with the problem early," he told Bernama on the sidelines of the Financial Times Asia Banking Forum here today after presenting his views at a panel discussion on "Navigating a Volatile and Challenging Economic Environment".Based on Malaysia's experience during the Asian financial crisis, he said the government and the central bank had moved early to tackle the problem in the banking system so that the supply of credit to the economy was not disrupted.
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Dr Sukudhew was Malaysia's negotiator for financial services in the Trans-Pacific Partnership (TPP) Agreement negotiations. Unlike some economies like Japan and Europe which delayed dealing with the problem, the long-term effect had pulled back economic growth."Those lesson applies to China and so on. We don't know exactly what the size of the debt issue is. Based on what we hear from the International Monetary Fund (IMF) and all, the corporate debt, in particular, is very high.Stay up-to-date by following Daily Express’s Telegram channel.
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It was reported recently that the IMF had warned efforts to address China's corporate debt load, which stood at 145 per cent of Gross Domestic Product, was "very high by any measure" and had seen only limited progress. – Bernama
