Also read : http://www.themalaysianinsider.com/malaysia/article/credit-bubble-imminent-as-malaysias-household-debt-rises
CAP : Now you know why many Malaysians don't feel so well off, with this level of household debt. About half our disposal income goes to servicing debt. What are some of the factors driving the high household debt/disposal income ratio?
-High growth in consumer-driven spending-Low interest rates encourage borrowing-Ease credit by banking institutions due to financial liberalisation (translating into fat profits for the banks?!)-Rising house prices especially in KL and Penang where the average house price to average income ratios are much higher-and of course, low income/wages.
So, are we worry? We all should. With 16th years of DEFICIT budgets, our gov is bankrupting our country, and majority of Malaysians do not even know about it.