Author

  • Norliza Che Yahya

    • Faculty of Business Management, UiTM, Malaysia
    • Malaysia

  • Bushra Mohd Zaki

    • Faculty of Business Management, UiTM, Malaysia
    • Malaysia

  • Nik Norain Izzati Nik Azid

    • Faculty of Business Management, UiTM, Malaysia
    • Malaysia

  • Nur Fatihah Mohd Ali

    • Faculty of Business Management, UiTM, Malaysia
    • Malaysia

  • Nor Amanie Najihah Hussain

    • Faculty of Business Management, UiTM, Malaysia
    • Malaysia

Abstract

This study aims to observe the determinants of the factors affecting household debt in Malaysia. This study has listed six independent variables that would affect Malaysia’s household debt: real interest rate, inflation rate, unemployment rate, household consumption expenditure, gross domestic product (GDP), and housing price index (HPI). This research was conducted by using annual data for 30 years (1991-2021); this study also used a quantitative approach to the collection of data using secondary data such as the website of the World Bank, Department of Statistics Malaysia, Eikon Thomson Reuters, and Bank Negara Malaysia. A theoretical model with the hypothesized relationships was tested with the help of the structural equation modelling procedures. Findings showed that the unemployment rate and gross domestic product have a positive and significant relationship with household debt. These determinants are directly affecting household debt in Malaysia, especially in microeconomic factors. This study will contribute to a better understanding that household debt can be influenced by other factors. Further study on the other determinants of household debt may result in varying results.

Keywords

References

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How to Cite

Che Yahya, N., Mohd Zaki, B., Nik Azid, N. N. I., Mohd Ali, N. F., & Hussain, N. A. N. (2023). The Determinants of Household Debt in Malaysia. Information Management and Business Review, 15(3(I), 183-194. https://doi.org/10.22610/imbr.v15i3(I).3528

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Copyright (c) 2023 Norliza Che Yahya, Bushra Mohd Zaki, Nik Norain Izzati Nik Azid, Nur Fatihah Mohd Ali, Nor Amanie Najihah Hussain (Author)

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Research Paper

Published in

Vol. 15 No. 3(I) (2023) Consumer Behaviour, Financial Literacy & Student Wellbeing View issue contents

Published

2023-10-08

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