Despite household debt hitting 84.3pc of GDP, BNM says it’s not a concern for now

AI Summary

Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour stated that Malaysia's household debt, at 84.3% of GDP, is appropriate for current economic conditions. While high, the debt is considered good quality with timely repayments and a healthy impairment ratio of 1.1%. BNM is closely monitoring the situation, emphasizing prudent lending practices by banks. As of March 2025, household debt reached RM1.65 trillion, but is offset by RM3.45 trillion in assets.