How much of Malaysia’s GDP is household debt at June 2024?

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Malaysia's Household Debt Represents 83.8 Per Cent of GDP in June 2024

At the close of June 2024, Malaysia's household debt had reached RM1.57 trillion, a figure that constitutes 83.8 per cent of the nation's Gross Domestic Product (GDP). This represents a marginal increase from the 84.2 per cent recorded at the end of 2023. Despite this slight rise, the debt service ratio (DSR) is reported to remain within prudent levels.
Composition of Household Debt

The structure of household debt is predominantly comprised of housing loans, which accounted for 61 per cent of the total. Following housing loans, vehicle loans formed the second largest component at 13.5 per cent, with personal financing making up 12.4 per cent. Other categories contributing to the overall debt include the purchase of non-residential property, credit card debt, and investments in securities.
Debt Service Ratio Remains Prudent

The government has indicated that the debt service ratio, a measure of how much of a borrower's income goes towards debt repayment, remains at a sustainable level. As of June 2024, the median DSR for outstanding loans stood at 35 per cent. For newly approved loans during the same period, the median DSR was 41 per cent.
Government Initiatives to Manage Debt

In response to the evolving debt landscape, the government continues to implement the 2012 Policy Document on Responsible Financing. Furthermore, plans are underway to introduce the Consumer Credit Act, which aims to regulate non-bank credit providers. This legislative move is intended to mitigate the risks associated with excessive indebtedness, particularly among younger and lower-income borrowers. The ministry also highlighted ongoing public awareness programmes and financial literacy initiatives, such as Financial Education Network and October's financial literacy month, to encourage sound financial decision-making.

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How much of Malaysia’s GDP is household debt at June 2024?

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