Kuala Lumpur, 21 June 2019 -The financial health of Malaysian households with the household debt as ratio to gross domestic product (GDP) decrease 0.8% from 2017 to 2018. This brings the room for the consumer to borrow for wealth accumulation purposes.
This development should encourage bank to give easier access on the financing especially for the first-time homebuyer as well as to the small, medium enterprises (SMEs) to develop the economic growth. According to the statistics the Household asset is 2.1 times household debt, giving then necessary buffer to face any financing contingencies.
Government acknowledge the lower income (B40) more vulnerable to shocks and need assistance to increase the financial strength which successfully done by the government through the cash transfer in Bantuan Sara Hidup (BSH), free public health insurance scheme mySalam and stabilize the petrol RON95 and diesel.
In addition, the Monetary Policy Committee (MPC) of BNM on & May 2019 cuts the OPR by 25 basis point to 3% from 3.25% to lower the cost of borrowing. It is requested the bank to not facing the loan default and increase the cashflow through Restructure and Reschedule their loans.
According to Department of Statistics Malaysia, retail sale increase 6.3% to RM41.6 billion in April 2019 from RM39.1 billion a year ago reflected that the household continue to spend more and indicate high consumer confidence.