The other day, I was at the ATM when I noticed a middle-aged couple in front of me in the queue. They tried a few times to withdraw funds. As I waited a few minutes, I overheard them saying they were trying to withdraw RM20, but the machine responded “insufficient funds”. They looked stressed and worried.
All is not well among Malaysians. The level of household debt has been rising over the years at the rate of 11.1 per cent annually.
It climbed to RM560bn by the end of August 2010 and that pushed up the household debt to gross domestic product (GDP) ratio from 66.7 per cent in 2004 to around 76 per cent in 2009. That ratio is the highest level in Asia, apart from Japan. And mind you, those household debt figures probably don’t include hidden borrowings taken out from the notorious alongs (illegal money lenders)! Full article in Aliran’s ‘Thinking Allowed’ section here.