National household debt stood at RM1.63 trillion (84.2% of GDP), lower than household financial assets of RM3.4 trillion

Malaysia’s Finance Ministry (MoF) reported that as of December 2024, national household debt stood at RM1.63 trillion (84.2% of GDP), significantly lower than household financial assets, which totaled RM3.4 trillion (178.2% of GDP).

The government maintains prudent lending standards through the Policy Document on Responsible Financing, ensuring household debt remains manageable.

National household debt

In response to concerns about one-third of households with a debt service ratio (DSR) exceeding 60%, the MoF highlighted efforts to manage risks, including financial literacy programs, loan repayment assistance, and affordable housing initiatives. The median DSR stood at 34% for outstanding loans and 41% for newly approved loans. The government also aims to control debt growth through housing programs and public transport improvements.

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