Household debt sector remains manageable

KUALA LUMPUR: Household debt grew at a slower pace of 4.1% (June 2021: 5.5%) year-on-year as at December 2021 due to the reimposition of containment measures in the third quarter.

According to Bank Negara’s Financial Stability Review - Second Half 2021, the growth in debt was primarily driven by housing loans as households took advantage of incentives under the Home Ownership Campaign (HOC) which ended on Dec 31, 2021.