PROPERTY MARKET AND THE FINANCIAL SECTOR: EXPLORING MALAYSIA'S SCENARIO IN TIMES OF CRISIS

Authors

  • Shazida Jan Mohd Khan Economics and Financial Policy Institute, UNIVERSITI UTARA MALAYSIA
  • Siti Nurazira Mohd Daud Economics and Financial Policy Institute, UNIVERSITI UTARA MALAYSIA
  • Mohd Yushairi Mat Yusoff School of Economics, Finance and Banking, UNIVERSITI UTARA MALAYSIA
  • Wong Woei Chyuan School of Economics, Finance and Banking, UNIVERSITI UTARA MALAYSIA
  • Edie Erman Che Johari School of Economics, Finance and Banking, UNIVERSITI UTARA MALAYSIA

DOI:

https://doi.org/10.21837/pm.v22i30.1449

Keywords:

COVID-19, spillover, property market, financial sector, Malaysia

Abstract

Amidst the global economic crisis caused by the COVID-19 pandemic, the financial sector faces an uncertain path due to various policy measures. This paper delves into the spillover effects of the relationship between Malaysia's property market and the financial sector. Using the Autoregressive Distributed Lag (ARDL) cointegration bound test, utilizing time-series data from Q12009 to Q32021, the empirical findings reveal a notable spillover effect of the pandemic on the relationship between the property market and financial sector development in Malaysia. Moreover, the marginal impact of the housing market and rental market on the development of the financial sector is elucidated by factors such as risk-averse behaviour, slower GDP growth, and government intervention through policy initiatives. It is crucial to consider this scenario as a precautionary measure, highlighting the potential for crisis prevention, despite the expansionary financial and monetary measures adopted in response to the pandemic-induced crisis.

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Published

2024-02-22

How to Cite

Mohd Khan, S. J., Mohd Daud, S. N., Mat Yusoff, M. Y., Chyuan, W. W., & Che Johari, E. E. (2024). PROPERTY MARKET AND THE FINANCIAL SECTOR: EXPLORING MALAYSIA’S SCENARIO IN TIMES OF CRISIS. PLANNING MALAYSIA, 22(30). https://doi.org/10.21837/pm.v22i30.1449