Last updated Saturday, October 01, 2016 11:37 pm GMT+8

Thursday September 22, 2016
03:13 PM GMT+8

Advertisement

More stories

Shoppers looking for bargain items on sale at Sogo, Kuala Lumpur, Nov 25, 2015. — Picture by Choo Choy MayShoppers looking for bargain items on sale at Sogo, Kuala Lumpur, Nov 25, 2015. — Picture by Choo Choy MayKUALA LUMPUR, Sept 22 — Malaysia ranked seventh in Asia and 34th worldwide on net financial assets per capita, according to an Allianz survey.

 

The Allianz Global Wealth Report 2016 released today said Malaysia’s assets to liabilities ratio of 2:1 was “comfortable”, thus indicating that most borrowers were able to repay their debts.

According to the report, at the end of 2015, each Malaysian had debts of up to about €7,285 (RM33,651.20) against the average financial assets of €14,960 (RM69,103.90).

“With net financial assets per capita amounting to €7,670 (RM35,429.61), Malaysia ranked 34 worldwide and seventh in Asia.

“Together with China, Malaysia forms a kind of midfield of the analysed Asian countries, with per capita net financial assets four times the per capita net financial assets in Thailand, which ranked one place behind Malaysia,” Allianz said in a press release.

Separately, the report revealed that in about one third of the countries analysed, the middle class was shrinking with lesser number of households participating in overall wealth.

Meanwhile, almost half of the countries analysed in the study showed that the share of wealth attributable to the middle class has increased, with Malaysia falling into this category.

“The middle class is gaining ground and, at the same time, wealth is becoming less concentrated at the top, i.e wealth distribution is becoming more equal...Malaysia belongs to this group of countries although changes are not too spectacular,” it said.

These findings correlate with that of Khazanah Research Institute’s latest data, which also similarly showed that the average Malaysian household has been earning higher income levels over the years.

In the government-linked institute’s report published last month, it revealed that the average monthly household income rose from RM5,000 in 2012 to RM6,141 in 2014.

Meanwhile, Bank Negara’s annual report for 2013 — the most recent figures available — showed household debt levels overall have increased to 87 per cent, a steady climb from 60 per cent in 2008. Of that figure, more than 40 per cent of household debt went into loans for property purchases.

Analysts who spoke to Malay Mail Online earlier this month said such a predicament was generally “a good form debt” because most Malaysians took up loans for investment purposes. 

MORE ON MMOTV

Advertisement

MMO Instagram

Tweets by @themmailonline