The report said that some households are showing signs of difficulty in servicing their debt, especially among low-income borrowers with personal financing, and borrowers with larger housing loans above RM500,000 and who are more dependent on variable income sources.
PETALING JAYA: While household debt to gross domestic product in Malaysia has fallen slightly to 83% in 2018, Bank Negara warns that there is a growing number of defaults in personal financing.
In its Financial Stability and Payment Systems Report 2018, the central bank said that half of total outstanding personal financing is held by borrowers with monthly earnings below RM5,000, and they mainly used it to support “lifestyle choices”.
Already a subscriber? Log in.
Limited time offer:
Just RM5 per month.
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
