Debt-servicing capacity of households intact

Bank Negara said that overall debt growth had continued to be driven largely by housing and car loans.

PETALING JAYA: Favourable labour market conditions and the continued availability of loan repayment assistance for viable borrowers are expected to continue lending support to overall household debt-servicing capacity, says Bank Negara.

In its “Financial Stability Review for the Second Half of 2023” (FSR2H23), the central bank said government support measures for vulnerable households are also anticipated to continue to strengthen the ability of households to service their debts efficiently.