A Personal Finance Blog for Malaysian: Malaysia Household Debt.... Wake Up Time...

Monday, March 25, 2013

Malaysia Household Debt.... Wake Up Time...

"Malaysia's household debt-to-GDP ratio climbed to 80.5% last year from 75.8% the year before, making it one of the five most heavily indebted countries in Asia. Such high household debt could be a major threat to the economy should it falter, say economists."

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.

Source http://cpteh.blogspot.com/2013/03/malaysia-in-debt-ii.html

Forum: http://klse.i3investor.com/blogs/cpteh/26980.jsp


  1. This is very bad on part of country's economic and government also. Besides, this is important for Malaysian citizens to be aware of.

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  2. We do hope more people read the truth from internet and mainstream medias are all controlled...