Malaysia's household debt at 87.1% of GDP

KUALA LUMPUR: The household debt in Malaysia is at 87.1% of the Gross Domestic Product (GDP) as at the end of September this year.
Deputy Finance Minister Datuk Ahmad Maslan said this was higher compared to neighbouring countries like Thailand and Singapore, which is at 82.3% and 75% respectively.
"This happens due to the fact that Malaysians are younger with the median age of 27.7 years old, compared to other countries, like Singapore - 33.8 years old, Thailand (36.2 years old), Indonesia (29.2 years old) and South Korea (40.2 years old)," he said in reply to a question by Senator Datuk Boon Som Inong at the Dewan Negara today.
He said the government always monitors the household debt to ensure it is at a level which can be controlled.
The government, through Bank Negara Malaysia, has implemented various progressive measures to prevent the increase in household debt so that it does not cause financial instability, he added.
He said that 60% of household debt is used for asset and wealth accumulation - 45% for housing loans, 8% for non-residential property and 7% for investments in equities and mutual funds.