Kuala lumpur: Malaysia’s household debt is currently at 84.3 percent of the country’s gross domestic product (GDP), a figure considered manageable under current economic conditions, according to Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour. The central bank is keeping a close watch on this elevated debt level, with loans being issued prudently and repayments occurring on schedule.

According to BERNAMA News Agency, Abdul Rasheed highlighted during a press conference that from a stability perspective, the loans are of good quality, and the debt service ratio has shown improvement. This announcement was part of the disclosure of Malaysia’s second quarter 2025 GDP performance. The governor also pointed out that banks have exercised prudence in loan approvals, supporting households with sound financial practices.

The household impairment ratio, a measure of borrowers’ financial resilience, stands at a robust 1.1 percent, reinforcing the stability of household borrowers. Abdul Rasheed assured that BNM will continue to monitor household debt closely to maintain financial stability, while ensuring that credit continues to support economic growth.

In a recent Dewan Rakyat session, Deputy Finance Minister Lim Hui Ying reported that Malaysia’s household debt amounted to RM1.65 trillion by the end of March 2025. While this figure is high, it is balanced by strong household assets. She stated that the household sector remains resilient, supported by financial assets totaling RM3.45 trillion as of end-March 2025, which is 2.1 times the total debt.