Shoppers pay 0%, while retailers fork out 10% in strained Asean credit market

A key emerging risk, especially for Singapore, is the advent of e-commerce, says an analyst about the plight of brick-and-mortar retailers

Published Tue, Jan 19, 2016 · 09:50 PM

Asean

Singapore

FAMILIES buying televisions are getting lower borrowing costs than the stores selling them, a reflection of the toll taken on South-east Asia retailers by flagging consumer demand and e-commerce rivalry.

Courts Asia Ltd, which offers shoppers zero per cent long-term credit on higher-end products, has seen its Singapore dollar bond yields rise 28 basis points to 4.34 per cent in the past six months and is trying to refinance the note ahead of its May repayment.

The yield on US currency bonds of Parkson Retail Group Ltd, part of a Malaysian retailer which operates across South-east Asia, has soared 320 basis points to 10.21 per cent.

Flagging global growth and rising household debt is knocking consumer demand across South-east Asia, with Indonesian phone seller PT Trikomsel Oke in November becoming the first co…