It provides unsecured loans to civil servants through strategic tie-ups with cooperatives and these loans are repaid via a salary deduction scheme. This is the national umbrella body for cooperatives whose members are made up of civil servants by virture of them being the bulk of cooperative members. Concern that civil servants are overly in debt have caught the eye of many as lending to civil servants had shown a marked rise in the last few years. To rein in household debt, the central bank has implemented reforms and macro measures, particularly among the lower income group. According to the latest statistics, Malaysia’s household debt-to-gross domestic product ratio stood at 89.1% as of 2015 from 86.8% previously.

Source: The Star August 13, 2016 00:11 UTC