SINGAPORE (Reuters) – Well, folks, the central bank in Malaysia gave a sigh of relief this Monday! They’ve assured that local banks with ties to China’s real estate big shot, Country Garden, aren’t wobbling on shaky grounds. These banks’ dealings with Country Garden’s Malaysian sibling, CGRE, are just a drop in the ocean. We’re talking less than a measly 0.1% of all the loans and bonds by mid-2023, according to the birdie (an email) from the bank.
“No sweat, folks! CGRE’s making their payments on the dot, and their cash flow’s pretty solid,” chimed in Bank Negara Malaysia.
And get this – on Monday, the Chinese company was beaming with confidence. Despite whispers about their financial muscle, they declared their $100-billion Malaysian venture was right on track. They even gave a little wink, hinting they’re not short on assets.
The Malaysian bank, always keeping an eye out, urged financial bigwigs to be cautious. “While handing out cash, keep your ear to the ground about the property scene,” they hinted. And added, “Don’t lose sleep over CGRE’s unsold properties here; it’s all under control.”
They also took a moment to soothe some nerves, “Whatever’s cooking with Country Garden over in China isn’t spilling into Malaysia. Our property prices and dealings are safe and sound.”
Now, here’s the kicker: Country Garden’s recent slip-ups – missing a couple of payments totaling $22.5 million – raised some eyebrows. Gossip mills were abuzz about how China’s property debt troubles might toss a wet blanket over global economic recovery.
But wait, there’s more! Country Garden’s ambitious “Forest City” dream, stretching over four man-made islands near the posh Singapore, is a sight to behold. Yet, the project, which now houses 9,000 souls, hit a few speed bumps since its 2016 debut. Blame it on China pulling the purse strings tighter and, of course, our uninvited guest, COVID-19.
However, last week brought a silver lining. Malaysia’s top dog, Prime Minister Anwar Ibrahim, spilled the beans. He’s giving the project a “special financial zone” badge to woo investors and slice business costs. How’s that for a plot twist?
