Tagged: household debt

Malaysians struggle as household debt soars

It is not just household debt as a percentage of GDP that we should be concerned about, but household debt compared to disposable income is even more crucial. Take a look at the yellow bar to see where we stand.

Comparison of household debt/GDP and household debt/disposable income. Source: Yong, 2010; Endut and Toh, 2009; Bank Negara, 2010. - Graph: Penang Monthly



Mounting household debt in Malaysia

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. (more…)