REUTERS/Fathin Ungku/File Photo Acquire Licensing RightsSINGAPORE, Aug 28 (Reuters) - Malaysia's central bank said on Monday that banks incorporated in the Southeast Asian nation faced limited financial stability risk arising from exposure to China's largest property developer, Country Garden (2007.HK).
Such banks' exposure to Country Garden Real Estate Sdn Bhd (CGRE), the developer's wholly-owned subsidiary in Malaysia, amounted to less than 0.1% of total banking system loans and bonds by June 2023, the bank told Reuters in an email.
"In the property sector, risks from unsold units from CGRE’s various projects in the country remain manageable," it added.
"The current development with Country Garden Holdings Ltd in China is not expected to pose any material impact on the overall property market activity and prices in Malaysia," it said.
Country Garden is building its largest overseas development, the massive Forest City project, across four reclaimed islands in the southern Malaysian state of Johor bordering the wealthy city state of Singapore.
Persons:
Fathin, Anwar Ibrahim, Yantoultra Ngui, Clarence Fernandez
Organizations:
REUTERS, Rights, HK, Garden, Sdn, Reuters, Bank Negara, Garden Holdings, Malaysian, Thomson
Locations:
Forest City, Johor, Malaysia, Bank, Bank Negara Malaysia, Malaysian, China, Forest, Singapore