Malaysia’s slowing economy and stricter lending rules are cooling demand for Islamic mortgages, helping cap Southeast Asia’s highest level of household debt.
Shariah-compliant home loans increased 17 percent in the first nine months of 2015, after rising an average 29 percent annually in the past five years, according to central bank data issued in October. Malaysia has raised property gains taxes, cut the maximum tenor on lending and placed limits on foreign ownership to check speculation in the market.
