Malaysia

RM1.26 tril household debt ‘manageable’: Finance Ministry

Bulk of borrowings for mortgages

Updated 5 years ago · Published on 06 Nov 2020 7:00PM

RM1.26 tril household debt ‘manageable’: Finance Ministry
The bulk of household debt comprises loans for the purchase of residential properties at 55.9%. – The Vibes file pic, November 6, 2020

by A. Azim Idris

KUALA LUMPUR – Household debt may have inched up in the first half of the year, but the government believes borrowings remain manageable.

Malaysian households owed RM1.26 trillion as of end-June, or 87.5% of gross domestic product, said the Finance Ministry in its Economic Outlook 2021 today.

This 4% rise from RM1.22 trillion in the same period last year has been attributed by the ministry to a sharp contraction in GDP in the first half of 2020.

Despite the uptick, household debt “is expected to remain manageable, supported by programmes to rein in the debt level and measures enacted to cushion the impact of the Covid-19 pandemic on the economy”, said the ministry.

The bulk of the debt comprises loans for the purchase of residential properties (55.9%), followed by personal use (14.2%) and passenger cars (12%).

The ministry added that total household assets for the period under review are valued at RM2.75 trillion, with growth in household financial assets continuing to outpace that of debt. – The Vibes, November 6, 2020

Related News

Business / 4y

Govt revenue up 4.6% to RM106.4 bil in H1 2021

Malaysia / 5y

Reckless, experts say of govt’s choice to dip into KWAN for Covid-19 fight

Opinion / 5y

Bypassing Parliament to tap RM16.9 bil trust fund for vaccines ‘disquieting’ – C4 Centre

Business / 5y

Unemployment to fall to between 3.5% and 4.0% this year: research house

Business / 5y

Govt’s financial standing remains strong: Tengku Zafrul

Opinion / 5y

Why you should keep your money in EPF – P. Gunasegaram

Spotlight

Malaysia

Former head of a ministry's corporate communications unit acquitted of bribery charge

Malaysia

Two sisters die trapped in Johor house fire as escape routes cut off by flames

Malaysia

NS election speculation intensifies as Aminuddin granted audience with state ruler

Malaysia

Teenager who drove recklessly, causing death remanded for further investigation

Malaysia

Police looking for trio involved in violent armed robbery in Penang (video)

Malaysia

Family of five killed as car crashes into water pipe in Serian

Malaysia

'I was once spat on by a pakcik' — Marina denies fear of contesting Malay-majority seats

Malaysia

Jewellery shop among six premises destroyed in fire (video)

You may be interested

Malaysia

Police capture wanted organised crime suspect in cross-border operation with India and Thailand

Malaysia

Viral list of PRN candidates is fake - BN Johor

Malaysia

Chinese national identified as organiser of drug-fuelled party raided in KL hotel

Malaysia

Pahang police logistics chief killed in motorcycle crash on Genting road

Malaysia

Future cooperation between PAS and Bersatu determined next Monday - Annuar Musa

Malaysia

Police confirm mystery of Jaslinda's disappearance has no criminal element

Malaysia

Woman pleads guilty to causing death of newborn daughter

Malaysia

Malaysia emerges as lucrative base for transnational scam syndicates, claims NGO