Household debt in Malaysia has reached levels that should concern our economic planners.
If we look at the breakdown of the household debt we can see several items that that are much higher than what our regional peers are experiencing – housing loans, car loans and margin loans.
If we want to ease the burden on Malaysian households, we need to think of how we can make housing more affordable and find alternatives to private motor vehicles.
To make house prices fall within the reach of the masses, we have to find ways to curb speculation (both local and foreign) and ensure more affordable housing is built.
As for transport, there is no other way out but to reduce our reliance on private motor vehicles and build more efficient and cost-effective public transport systems.
The other factor to consider is, what will be the impact of GST on the most vulnerable households?
Thanks to blog visitor Josiah for the suggestion to look at this topic.