KUALA LUMPUR, March 19 — Malaysian households continued to borrow heavily in 2013, with their combined borrowing spiralling to 86.6 per cent of the total value of the entire economy, data from Malaysia’s central bank showed today.

Household debt stood at 80.5 per cent of gross domestic product in 2012 and 70.5 per cent in 2011.

The latest increase comes even as household lending growth slowed in 2013.

Household debt grew 11.7 per cent in 2013 after growing 13.5 per cent in both 2012 and 2011.

The latest figure was the smallest since 2010 and was due to tightening measures imposed since July last year,  Bank Negara governor Tan Sri Zeti Akhtar Aziz said as she released the central bank’s Financial Stability and Payments Systems Report for 2013.

“The combined effects of incremental measures introduced by the (central) Bank since 2010 to curb excessive household indebtedness continued to be observed, particular in reducing the vulnerability of lower income households,” she said.

Last year, the central bank introduced measures to curb lending, including limiting the duration of mortgages and personal loans.

The  level of indebtedness will only start to moderate when Putrajaya increases the supply of affordable housing and improve public transportation, Bank Negara said.

“During this current period, it is particularly important that financial institutions, including non-binding credit providers, continue to maintain sound lending discipline and robust affordability assessments,” added Zeti.