The ministry said household financial assets totalled RM3.4 trillion at the end of last year, equivalent to 178.2% of the GDP.

“The prudent lending standards of banks, based on a responsible financing policy implemented since 2012, continue to play an important role in ensuring that household debt is manageable and in line with repayment capacity,” it said in a written parliamentary reply.

It was responding to Nik Zawawi Salleh (PN-Pasir Puteh), who asked about the government’s steps to assist the one-third of households in Malaysia that have a debt service ratio (DSR) of over 60% and are vulnerable to bankruptcy in the event of interest rate hikes, job loss, or inflation.

The ministry said the DSR for households remained at a prudent level at the end of 2024 with a median of 34% for outstanding loans and 41% for newly approved loans.