Malaysia’s household debt stood at RM1.65 trillion, or 84.3% of Gross Domestic Product (GDP), as of the end of March 2025, Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat today.
However, she stressed that households remain financially resilient as their financial assets are 2.1 times higher than total debt.
“Household debt should be viewed alongside financial assets, which are significantly larger,” she said.
Lim was responding to a supplementary question from Datuk Awang Hashim (PN–Pendang) on the highest debt-to-GDP ratio, adding that the government and Bank Negara Malaysia (BNM) are committed to assisting credit users facing financial hardship.
Replying to the original question from Datuk Indera Mohd Shahar Abdullah (BN–Paya Besar), Lim said all loans approved by financial institutions are subject to the Responsible Financing Practices Policy Document implemented by BNM since 2012.
She explained that the median debt service ratio (DSR) for outstanding loans remains at 34%, while the median DSR for newly approved loans stood at 41% in 2024, indicating prudent levels.
Meanwhile, the Credit Counselling and Debt Management Agency (AKPK) continues to assist borrowers in managing finances. To date, more than 64,000 borrowers have fully settled their loans through the Debt Management Programme, while nearly 270,000 participants remain active in the financial rehabilitation process.
