Malaysia's rising household debt hits new record of 86.8% of GDP

MALAYSIA’S household debt level has risen to a new record of 86.8% of gross domestic product (GDP) at end-2013, driven by loans for properties and motor vehicles. That is the highest household-debt-to-GDP level in Asia.

“The ratio of household debt-to-GDP is expected to remain elevated over the next few years as demand for credit is likely to remain strong, particularly from the relatively young labour force and more affluent population setting in urban centres,” Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said at a press briefing.