Summary

  • Household debt reaches RM1.73 trillion.
  • Debt-to-GDP ratio falls to 84.4%.
  • Loan repayment indicators remain stable.
  • Banks continue targeted repayment assistance.

KUALA LUMPUR, July 1 — Prime Minister Anwar Ibrahim said Malaysia’s household debt stood at RM1.73 trillion at the end of March 2026, equivalent to 84.4% of GDP, down slightly from 84.7% at the end of 2025.

Anwar said household finances remain resilient, with the impaired loan ratio stable at 1.0%, while the median debt service ratio stood at 33% and the debt-to-income ratio remained at 1.3 times.

He added that banks will continue offering targeted repayment assistance, including loan restructuring and temporary repayment relief, to borrowers affected by global economic uncertainties.