Masked household debt hardships

MALAYSIAN household debt seems sustainable despite the high levels. Total household debt stood at 84.4% of gross domestic product (GDP) or over RM1.7 trillion as at end-March 2026, which is just slightly lower than the 84.7% of GDP at the end of last December.

This is backed by data showing that borrowers’ ability to repay their loans does not seem stretched, with Bank Negara Malaysia (BNM) statistics noting that household loan impairment stood at a steady 1%, the same as at end-December.