MalayMail-Apr 23
Malaysians repaid over RM23 billion worth of credit card debt as of December 2025, a record rate underpinning the growing concern about the country’s high level of household debt that has reached 85 per cent of GDP. Data published on the Department of Statistics Malaysia’s OpenDOSM website showed debt from credit card repayment reached RM23.67 billion by December 2025 before dropping to RM23.38 billion by the first month of 2026. Meanwhile, credit disbursed through credit cards reached a peak of RM24 billion at the end of 2025. It’s unclear how much of the debt repayment goes to Buy-Now-Pay-Later (BNPL) companies, which have exploded over the last five years. BNPL services often overlap with credit card usage, though many also extend credit independently.
Malaysia has the second highest household debt to GDP ratio after Thailand, although Bank Negara Malaysia said the level of household borrowings remains manageable with little risk exposure to the financial system, since a large chunk of the debt is house loans. Officials rarely explain the trend in rising credit card debt, but analysts generally believe it stems from the rise in living costs and the aspiration for a higher standard of living, especially among urban populations. “Combined with stagnant wages, this has compelled many to rely on credit for essential and discretionary spending. Inflation and corresponding high prices have Malaysians grappling with ever-increasing costs of living,” researchers at Taylors University wrote. “The Household Expenditure Survey published by the DOSM revealed that, on average, Malaysians spend RM229 per month on communications, representing a 950 per cent increase from RM24 in 1993,” they added. Meanwhile, spending on housing, water, electricity and gas has increased by 440 per cent, from RM245 per month in 1993 to RM1,068 per month in 2019. Spending on groceries and eating in restaurants have risen by 280 per cent and 440 per cent, respectively, the same researchers noted. Read more at:
