Malaysia’s household debt has not reached alarming levels, said Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz.
Currently, the country’s household debt stood at about 83% of gross domestic product.
“If we look at the non-performing loans, it is less than 2% for the household sector. So in other words all those who had borrowed are creditworthy.
"In Malaysia, we have the Central Credit Reference Information System that monitors the exposure of each individual and businesses,” she told reporters a press conference at the 5th Alliance for Financial Inclusion (AFI) Policy Global Forum on Wednesday.
“We have taken the necessary measures – micro-prudential measures - to rein excessive lending activities. We believe at this point it is contained, and we have seen the loan growth that is from 13% growth to a more sustainable growth of 9%,” she added.
“Through this we have seen the bad debts or impaired loans from the household sector and from the other sectors, including SMEs (small and medium enterprises) really go on a declining trend. Therefore, no we aren’t concerned,” she said.