Buy now pay later: Over 160k have RM121.8b in overdue debt
She said the outstanding BNPL loan balance for the same period stood at RM3.8 billion, representing 0.2 percent of Malaysia's total household debt.
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BusinessToday
21 hours ago
- BusinessToday
Household Debt Remains Controlled Amid Government Measures
The government confirmed that household debt remains at a manageable level despite concerns over rising debt, particularly among civil servants, according to Deputy Finance Minister Lim Hui Ying during the parliamentary session on August 13 2025. As of March 2025, total household debt stood at RM1.65 trillion, equivalent to 84.3% of Malaysia's gross domestic product (GDP), showing little change from the end of 2024. The government emphasised that household financial health must be viewed holistically, noting that household financial assets amounted to RM3.45 trillion during the same period, 2.1 times the debt level, providing a strong financial buffer. Measures to control household debt include the Policy Document on Responsible Financing issued by Bank Negara Malaysia since 2012. This framework regulates loan approvals, including those to civil servants, ensuring borrowers' repayment capacity is assessed based on disposable income and debt service ratio (DSR) limits. Data from late 2024 indicated the median DSR of aggregate household loans remained prudent at 34%. Specifically for civil servants, Regulation 13 under the Public Officers (Conduct and Discipline) Regulations 1993 prohibits officers from falling into serious financial indebtedness and mandates that their net monthly salary must not fall below 40% after deductions. Bankruptcy data from the Malaysian Insolvency Department recorded 4,194 cases involving civil servants from 2020 to June 2025, representing only 0.3% of the 1.6 million public sector employees. Support services through the Credit Counselling and Debt Management Agency (AKPK), under Bank Negara Malaysia, provide financial advice and loan restructuring programmes to individuals in need. The Public Service Department (JPA) also implements strategic initiatives such as the Mind Transformation Programme (PTM) to educate new officers on personal financial management. This statement addresses a question raised by Kuala Krai MP Abdul Latiff. The MP asked the Ministry of Finance to clarify the government's measures to address the concerning trend of rising household debt, especially among civil servants. He also inquired about the justification for financial institutions approving loans of up to RM400,000 for middle-income earners and the control measures implemented to ensure household financial stability. The government reiterated its commitment to maintaining household financial stability through regulatory oversight and targeted support measures.
Barnama
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Businessman Remanded In RM3.8 Million Negeri Sembilan Land Deal Probe
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The Sun
2 days ago
- The Sun
Household debt manageable with strong financial buffers
PETALING JAYA: Malaysia's household debt remains within manageable levels, standing at RM1.65 trillion as of March 2025 – equivalent to 84.3% of gross domestic product – with little change from the end of last year, according to the Finance Ministry. During Minister's Question Time in the Dewan Rakyat yesterday, Finance Deputy Minister Lim Hui Ying said household financial assets in the same period amounted to RM3.45 trillion, more than double the debt level. 'This provides a strong financial buffer for households and strengthens resilience against potential economic shocks,' she said, adding that all loans approved by financial institutions, including those to civil servants, are subject to Bank Negara Malaysia's policy document on Responsible Financing to maintain debt sustainability. The policy document has been in place since 2012. The framework assesses borrowers' repayment capacity based on a minimum net disposable income and a set Debt Service Ratio (DSR) limit with the median DSR for total household loans at a prudent 34% as of end-2024. 'Regulation 13 of the Public Officers (Conduct and Discipline) Regulations 1993 prohibits serious indebtedness and requires a minimum monthly net salary of 40%. Data from the Insolvency Department shows that between 2020 and June this year, 4,194 bankruptcy cases involving civil servants were recorded, which is just 0.3% of the 1.6 million-strong public service workforce.' Lim said support programmes remain in place to help households manage debt effectively, including advisory services and debt restructuring assistance offered by the Credit Counselling and Debt Management Agency for individuals facing repayment difficulties. Meanwhile, she said the Public Service Department is strengthening financial literacy among public officers through the Mind Transformation programme, which provides early guidance on personal financial management for new recruits. 'The government acknowledges that civil servants often require financial assistance, with measures and negotiations in place to help them restructure and manage debt. Meanwhile, the banking sector monitors borrowers under the DSR framework. We also recognise that the rising cost of living has affected some civil servants and the government has implemented the Public Service Remuneration System and increased salaries for public servants.' Additionally, Lim said allocations under the Payung Rahmah initiative help civil servants cope with living costs. 'As of March this year, housing loans made up 61.1% of total household debt – the largest share – with rising property prices posing a particular burden on civil servants. To address this, the government is implementing several affordable housing schemes, including the Residensi Madani and PR1MA programmes, targeting low and middle-income groups. The government remains committed to reviewing and improving such initiatives to ensure greater access to home ownership.'
