Interest rates drive household debt levels in Malaysia, study finds.
Household debt in Malaysia is influenced by macroeconomic factors like interest rates, savings levels, and unemployment. A study using data from 2008 to 2018 found that higher interest rates lead to higher household debt, while savings levels and unemployment also play a role. Interestingly, higher savings levels and unemployment rates are associated with increased household debt. Inflation rates, however, do not have a significant impact on household debt in Malaysia.