He was replying to a supplementary question from Datu Nasrun Datu Mansur (BN-Silam), who wanted to know the government’s move in controlling the use of credit cards among the younger generation to thwart bankruptcy.

Chua said a total 18,457 bankruptcy cases were reported last year.

In explaining credit card debt, he said to control credit card usage, Bank Negara Malaysia (BNM) had set certain conditions which must comply, with the minimum income of RM24,000 per annum.

“In fact, statistics show that the credit card application approval rate is between 50 and 60%, and not 80%,” he said.

Responding to the original question from Datu Nasrun on the government’s initiative to ensure total household debt was manageable, Chua said BNM implemented various progressive measures to curb the rise of household debt since 2010.

He said, also implemented were the Pengurusan Wang Ringgit Anda (Power!) programme and Credit Counselling and Debt Management Agency (AKPK) to enhance awareness and skills in financial management.

According to Chua, until the end of last year, the total household debt in the country was RM1.030 trillion with 80% of the banking system and 20% of non-bank financial institutions, covering 89.1% of the Gross Domestic Product (GDP).

“Of the total, 62.6% are for asset accumulation, namely purchasing of real estate and investment in financial assets,” he said.

— BERNAMA