[@staronline] Husni: Household debt not at worrying level

It has been quite sometime since I really logged in this blog and pour out my thoughts on things. I think the last posting was 2 weeks ago. And since then, quite a big chunk of own opinion stuck inside my head. What I wrote in twitter is just some drop of it.

So, here I am, pouring my thoughts based on news, and my take on things based on issues.

As the title suggest, the Star reported as follows:

PUTRAJAYA: The country’s household debt exposure is not at a worrying level and the non-performing loans (NPL) ratio is still under control, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

“If we can control personal debt, in terms of loan applications and the ability of the borrower to repay, that is what we should focus on.

“What is important is the loan performance in the financial sector portfolio is of high quality,” he told reporters after launching his ministry’s open day celebrations here today.

The government is looking at ways to improve the household debt situation, he said.

“Although the NPL ratio is still low and under control, we don’t want the people’s take-home pay to be too low.

On Budget 2014 to be tabled by Prime Minister Datuk Seri Najib Tun Razak on Oct 25, Ahmad Husni said the government is in the process of conducting meetings with 15 focus groups.

“We will begin with fiscal sustainability and we hope to complete everything this month,” he said, adding the government will hold budget consultations in Sabah and Sarawak as well.

However, he said, Budget 2014’s main aim is to lower the fiscal deficit from 4.5% of gross domestic product last year to four per cent this year and even lower next year, as well as to keep the debt-to-GDP ratio at below 55%. – Bernama

What actually caught my interest (and in a way is one of the push factor why I start to write again) is actually this para:

If we can control personal debt, in terms of loan applications and the ability of the borrower to repay, that is what we should focus on.

For some reason, I have to agree on this.

Much of the personal financial issues that being a concern and politicized nowadays is due to the choice made by oneself. (Okay, I think when some of you read this, you already want to shoot me and say I am proBN.. please hear me out).

Many of us complaint that with such earnings, they should have blabla and bla (based on the dreams built years ago). For some, they achieved what they want.. and unfortunately for some, they failed and succumbed to high debt.

Yes, for certain extent, I do agree lowering car and house price will help, BUT, I am not sure for how long car and property companies will last and what kind of product we can expect from them. If one can recall, Mercedez back in those days are much “tougher” than Mercedez we have now. In those days also, some products could last longer than same kind of products nowadays. Ask your parents how long they use certain things and compare the life-cycle of the similar products you are using nowadays.

Okay, back to the topic.

For some people, they managed to get their dreams realised through various ways…and able to sustain it because they manage their financial well. You can read their success stories in bookstores and library. Some of them do share.. but I think many not learning from it.

Managing own financial IS NOT being taught formally in classes. It takes some theory and self discipline to do it. I also don’t expect one could do own Profit and Loss statement (but my father did record his expenses though. I could see him keep receipts etc until perhaps 5 to 6 months before disposing it).

Believe me if I tell you, some are not able to differentiate between NEEDs and WANTs. What are those two actually?

Let me give you an example. Your old sport shoes are torn, and you NEED a new sport shoes. Instead of buying Fung Keong or whatever brand, you WANT Adidas, Nike sport shoes.

Same goes to other NEEDs and WANTs. We need a house, but for some, they WANT a house with 4 bedrooms and 2 bathrooms (but may also be a NEED of the family is big). We need a car, but for some, they WANT a car build for speed or comfort.

So, considering that many aren’t able to control self in making financial plans and executing it, I supposed the move taken by Government had to be done.


It will be interesting financial institutions will do workarounds once this being implemented. 🙂

Question on the street: How many are aware, differentiate and control their spending based on NEEDs or WANTs?


You are part of people on the street. My opinion might not as good as yours. Come, please share your thoughts with us!!!

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