Malaysia Car Loan Interest Rates Increased

The car loan interest rates in Malaysia had been increased following the recent increase in the Bank Negara Overnight Policy Rate (OPR) a.k.a Malaysia interest rates bench mark. 

Interest rates on new non-national car loans has increased by an average of 0.25 percentage point while rates for new national car loans saw a hike of about 0.10 percentage point.

EON Bank Bhd said the bank’s revised interest rates for new non-national cars were 3.5% (5-year tenure), 3.75% (7-year) and 3.85% (9-year). Meanwhile, rates for new national cars now stood at 3.85% (5-year tenure), 4%

Ringgit Malaysia (MYR) Recent Performance Up to May 2010

Source: Bank Negara Report

As we can the Malaysian Ringgit is getting stronger against almost mostly of the major foreign currencies especially the Euro , except the recent pick up in US Dollar and Japanese Yen as of May 2010. Thus, as the time goes, the Euro may surge back as the debt crisis is getting better. So, chances occur ?

Malaysia's Banks Performing and Unaffected by Eurozone Crisis

The recent heavy sell down on the Malaysia stock market and causing the FBM KLCI to tumbles in the past 2 weeks are already picking up. 

Firstly, the main cause is the Eurozone debt crisis which involve Greece, Spain and Portugal, but up to date the International Monetary Fund (IMF) and the European Union (EU) had already bailout them by providing loans. 

Secondly, it was the huge quarter losses of plantation conglomerate Sime Darby. Up to now, Sime Darby share price had already slump down 12% in 2 weeks. The CEO of Sime Darby had also been removed. 

Thirdly,  as we know if the manufacturing sector is suffering a meltdown in demand from Europe, then this will indirectly affect the banks lending prospects, and this was not the problem, as the manufacturing sector in Malaysia is on a pick up trend. Furthermore, Malaysian banks also have no exposure to any of Europe’s papers or business interest.

Although interest rate hikes totalling 75 basis points in 2010, but those bankers are still confident on the loan growth and will be stronger than previous year. If not the Bank Negara will not raise the interest rates. And the inflation are not in pressure.

Thus, Malaysia Banks are fundamentally good and performing and are not in a worrying trend.

Malaysia Assets and Liabilities and International Reserve Position as at May 2010

Malaysia Assets and Liabilities As At 14 May 2010

Malaysia International Reserves Position As At 14 May 2010

The international reserves of Bank Negara Malaysia amounted to RM314.2 billion (equivalent to USD96.1 billion) as at 14 May 2010. The reserves position is sufficient to finance 8.3 months of retained imports and is 4.4 times the short-term external debt.