KUALA LUMPUR, Aug 15 — Malaysia’s household debt stands at about 84.3 per cent of gross domestic product (GDP), a level deemed appropriate for the country’s economic conditions, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.
The central bank is closely monitoring the elevated household debt level, even as loans are being extended prudently and repaid on time.
“From a stability perspective, these are good quality loans, and the debt service ratio has also improved,” he said during a press conference after announcing Malaysia’s second quarter 2025 (2Q 2025) GDP performance today.
Rasheed added that the banks have been prudent in their loan approvals and have supported households through sound financing practices.
“The latest household impairment ratio stands at a healthy 1.1 per cent, which reflects the resilience of household borrowers,” he said.
Rasheed emphasised that BNM would continue to monitor household debt developments to safeguard financial stability while ensuring that credit remains supportive of economic growth.
In a recent session of the Dewan Rakyat, Deputy Finance Minister Lim Hui Ying said that Malaysia’s household debt reached RM1.65 trillion as of the end of March 2025. While this level remains elevated, it is offset by robust household assets.
She noted that the household sector remains resilient, backed by financial assets amounting to RM3.45 trillion as of the end of March 2025, which is 2.1 times higher than the total debt.
