PETALING JAYA (Oct 27): Residential property loans made up a larger proportion of household debt – which rose by 5.1% to RM1.12 trillion as at end-July 2017 – expanding by 8.8%, according to the “Economic Report 2017/2018”.
“Total household debt accounted for 85.6% of GDP as at the second quarter of 2017 (2Q17) (end-2016: 88.4%).
“The bulk of household debt was for wealth accumulation with 63% secured by properties and principal-guaranteed investments,” it stated.
However, the household debt growth moderated slightly from 5.8% to RM1.05 trillion as at end-July 2016.
“The moderating growth trend in household debt was mainly attributed to a series of prudential measures introduced by the government since 2010 to rein in debt accumulation of households.
“Households are also more cautious in acquiring debt and are mindful of their ability to pay,” it continued.