By Selangor Journal Team
SHAH ALAM, March 19 — Malaysian households are RM1.53 trillion in debt as of the end of 2023, with housing loans constituting the largest portion at 60.5 per cent.
Finance Minister Datuk Seri Anwar Ibrahim said this is followed by vehicle loans (13.2 per cent), personal financing (12.6 per cent), and loans for various other purposes, such as acquisition of non-residential properties, credit card debts, securities, and other miscellaneous expenses.
He said this in a parliamentary reply to Labis MP Pang Hok Liong, who wanted to know the national aggregate household debt from 2018 to 2023.
According to Anwar, the average annual growth rate of household debt during this period stood at 5.1 per cent, driven primarily by housing and vehicle loans.
“This trend was influenced by the various home ownership incentives offered by both the government and private sector, as well as sales and service tax (SST) incentives for motor vehicle purchases between 2020 and 2022.”
Anwar said in 2018, the overall household debt stood at RM1.19 trillion, before increasing to RM1.25 trillion in 2019, RM1.32 trillion in 2020, RM1.38 trillion in 2021 and RM1.45 trillion in 2022.
“The ratio of household debt to gross domestic product at the end of 2023 slightly increased to 84.2 per cent, compared to 82 per cent in 2018,” he said.
