Are Malaysian households overly indebted?

Bank Negara Malaysia (BNM) in its Financial Stability Review Second Half 2019 released last week gave some interesting insights into the Malaysian household sector, in particular the resilient nature of the households, with stress test scenarios, should either the property market or the equity market experiences significant decline.Overall, according to BNM, Malaysia’s household debt to GDP remains elevated at 82.7% as at end 2019.

THE Malaysian households are indeed pillars of the economy as they are basically drivers of domestic consumption and with that the health of the households is an important gauge for any central banks.

Bank Negara Malaysia (BNM) in its Financial Stability Review Second Half 2019 released last week gave some interesting insights into the Malaysian household sector, in particular the resilient nature of the households, with stress test scenarios, should either the property market or the equity market experiences significant decline.