Deputy Finance Minister, Datuk Ahmad Maslan reported that the ratio of Malaysian households' financial assets to household debt in 2014 is 214 percent.

Ahmad said that it should be seen as good news since most of the debt was incurred for property acquisition.

While last year's household debt to Gross Domestic Product (GDP) ratio of 87.1 percent can be considered as high within the Asian region, it is not worrisome since households in Malaysia have a high level of asset ownership relative to their debt, according to media report.

The main reason for the growth in household debt is rising house prices, he said, with purchases of residential properties accounting for nearly 50 percent.

He added that if the property industry reduces house prices and offers more units of affordable homes, the household debt can definitely be lowered, as to address concerns that the high levels of household debt in Malaysia could put the country at risk.

He shared that with respect to the household debt to GDP ratio of 87.1 percent, residential property acquisition accounted for 45.7 percent, followed by vehicle purchases (16.6 percent) and personal loans (15.7 percent).

Over the past few years, household assets to debt ratio consistently stood above 200 percent, at 220 percent, 223 percent, 225 percent and 235 percent for the years 2013, 2012, 2011 and 2010 respectively.

He hoped the household debt may be lowered to less than 75 percent of GDP just like in 2010, via financial literacy programmes, improving household income through entrepreneurship activities and the government and private sector offering more affordable homes.