KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40. The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day. The broader market was positive with gainers outpacing losers 707 to 402, while 547 counters were unchanged, 1,085 untraded and 56 suspended. Turnover expanded to 3.03 billion units valued at RM3.56 billion from 2.49 billion units valued at RM2.25 billion on Thursday.
Thailand is facing a significant rise in household debt, reaching its highest level in 16 years as an uneven post-pandemic recovery continues to impact family incomes. A recent survey by the University of Thai Chamber of Commerce reveals that average household debt will increase by 8.4% to 606,378 baht (US$17,959) this year. The survey, conducted with 1,300 respondents between September 1 and 7, marks the highest level of debt since the survey began in 2009.
Key Takeaways:
Rising Debt Levels Amid Economic Challenges: Household debt in Thailand is estimated at over 16 trillion baht, or roughly 91% of the country’s GDP. The surge in debt, fueled by economic uncertainty and income disparities, poses a challenge for new Prime Minister Paetongtarn Shinawatra, who plans to prioritize debt restructuring as part of her policy agenda.
Impact on Economic Growth and Investment: The high level of household debt is a deterrent to Thailand's attractiveness as an investment destination. According to Thanavath Phonvichai, president of the University of Thai Chamber of Commerce, high debt levels limit consumer spending and constrain future economic growth, making government intervention critical.
Government Strategies and Projections: The government aims to stabilize the household debt-to-GDP ratio at around the current level of 91%, with a target to reduce it to 89% by next year. New economic measures, such as cash handout schemes, are expected to boost growth and help reduce debt levels. The survey indicates that nearly 70% of household liabilities are formal debts, while the remainder comes from informal sources, which could represent up to 20% of GDP.
These findings highlight the urgent need for Thailand's government to address household debt to sustain economic growth and maintain investor confidence.
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