HouseholdDebtPPT课件

➢Individual engages with debt for many different reasons. Some use credit card because we think in this modern world credit card is a must since we don't have enough income to support all of our daily consumption regardless it is necessary or not thus individual may possess more than one credit card.
➢This situation showed that on average, Malaysian household debt is greater than their income.
Statement of Research Problem
➢ Kee (2010) reported that studies carried out in the advanced economies have shown a higher ratio of household debt to disposable income is a key determinant of financial distress.
➢ Given the rising trend in the household debt, more households are getting into debt situation as a result of higher spending levels.
➢ AKPK recorded from 50,361 cases that enrolled in debt management program, 10.6 percent households could not pay their credit card debt while the remaining 74.3 percent had repayment problem with housing loans, car loans and credit cards outstanding.
➢Local press reported a note by CIMB Research dated Oct 28 stated that the ratio of household debt to personal disposal income hit 140.4 % in 2009 which was higher than Singapore 105.3% and the US 123.3%.
properties below RM 150,000 higher than those in higher income (The Star, 2010).
• Reduction of duties on cars: 23% of total household loans at end of 2007 (Norhana and Hua, 2009).
Implication : ➢ Central Bank Annual Report 2009 reported that the household debt to GDP ratio had been shot up to 76.6 percent for 2009 which is the highest in Asia (excluding Japan).
Name : Matric No:
Nur Shahirah Binti Azman EGA 090051
ቤተ መጻሕፍቲ ባይዱ
Determinants Of Household Indebtedness In Malaysia
Households ➢ Hard to escape from debt moreover with growing amounts of products and services that banking institutions had offered. ➢ Face a very challenging task in managing their economic decision. ➢ Problem arise when households choose to consume more than the amount earn.
Factors ➢ Roles of banking institutions in Malaysia, had reduced the credit to business and focused more on giving credit to households.
➢Government Policy: • Promotes home ownership policy: NPL home buyers with
➢Department of Insolvency Malaysia (MDL) reported that this agency had restructured 80, 348 bankruptcy cases from 2005 to May 2010. MDL also listed some of cases involved in different type of loans that caused the bankruptcy which are 9,464 cases for failing to settle personal loans, 6,022 cases for failing to settle housing loans and 4,417 cases for failing to settle credit card debts.