Soaring household debts, BN’s product says PKR

Syed Jaymal Zahiid

Much of the debt are blamed on the federal government's tax regime and shoddy economic management which have led to wage stagnancy crisis.

FMT ALERT

PETALING JAYA: PKR today blamed the shooting up of household debts, which stood at a whopping RM577 billion in November 2010, on the Barisan Nasional government which it said was more “pro-business” than “pro-voters”.

A recently released Bank Negara report showed that the amount was equivalent to 74% of the gross domestic product (GDP) of which RM118 billion was for car loans, RM22 billion for personal loans and RM225 billion was for housing loans.

Deputy president Azmin Ali said the staggering household debt-to-GDP ratio is worrying amid a record high government debt which has surpassed the 50% mark in terms of public debt to GDP ratio.

“For the public, this level of high household debt means less disposable income to spend on education and knowledge,” Azmin told a press conference at the party’s headquarters here.

Much of the debt are blamed on the federal government’s tax regime and shoddy economic management which have led to wage stagnancy crisis.

According to a recent World Bank report, Malaysia recorded a lowly 2.4% increase in salary from the start of this century to 2009 while neighbours like Indonesia registered a double digit rise.