Personal loans' long tenure will keep M'sian indebtedness high

Kuala Lumpur

RISKS emanating from Malaysia's high household indebtedness continue to moderate but the level of indebtedness is not likely to dip in the coming years because of the long average tenure remaining on the loans. A borrower could previously take a 45-year home loan, for instance.

On Wednesday, the central bank revealed Malaysia's household debt had inched up to 87.9 per cent of GDP from 86.7 per cent in 2013, marking the second consecutive year of moderation.

Its growth of 9.9 per cent was the slowest pace since 2010, observed Bank Negara Malaysia (BNM) governor Zeti Akhtar Aziz, when presenting th…