The impressive ratio of household debt to GDP, this year Malaysia has exceeding 80%! Even though the ratio is impressive we have to look at the big picture which shows a still stable growth, Malaysia will possibly bag a 4.6% to 4.8% GDP growth as year on year growth, GNI per capita is also growing consistently and moving towards the target of 2020 as high income nation.
Bank Negara and the Malaysian “Iron Lady” (Tan Sri Dr Zeti Governor of BN since after the 97/98 crisis) are closely monitoring the ratio of household debt and has introduced a number of very stringent new rules that has been resulting in disgruntled faces between the wide crowd of investors and speculators. Unfortunately these measures are like a bitter medicine; we surely don’t like the taste but in the long run we will enjoy the benefit and feel much much better. Here’s the article clipped from The Sun Daily.