Ratings firms warn of risks in KL minister's proposal

Kuala Lumpur

AMID a growing debate over the feasibility of allowing developers a licence to finance home buyers, ratings agencies caution that the move could add to Malaysia's credit risk and worsening household debt.

On another level, the controversial lending scheme mooted by housing minister Noh Omar last week to the surprise of his Cabinet colleagues, highlights the lack of coordination among ministries, analysts say and does not bode well for good governance.