The household debt-to-GDP ratio is currently 91%, causing banks to tighten lending criteria for borrowers who apply for auto/motorcycle loans.
Bankers have been more selective in granting loans for fear of non-performing loans.
“We are facing household debt problems which dampen consumer purchasing power, along with people’s concerns over the sluggish economy, causing them to be more cautious about spending.”
Auto sales and motorcycle production are way off.
In June alone, total motorcycle manufacturing plunged by 25.7%
The export sector has also not very positive for motorcycle manufacturers.
At issue is the gov’t not recognizing the dire straits of the economy and not having a viable answer how to give the economy a boost.
The current household debt should be sounding alarms but it apparently isn’t.
Economic issues can also affect foreigners, who should keep a close eye on the economy.
Incentives such as the digital wallet are not going to fix anything.
We can only hope.