PETALING JAYA , NOVEMBER 16, 2018-Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail said that some 64,632 Malaysians aged between 18 and 44 years old have been declared bankrupt over the last five years.
She pointed out that news reports say the top four reasons a borrower was declared bankrupt was due to car loans, personal loans, housing loans and business loans.
she said as of this year, there were 13, 338 Malaysians declared bankrupt as of September, according to the Insolvency Department.
“However, I am happy to see a downtrend in the ratio of total credit cards’ outstanding amounts over the last five years. it has gone down to 2.3 per cent of the total outstanding financing in the third quarter of this year from 2.86 per cent in the corresponding period five years ago, according to Bank Negara Malaysia statistics.”
she said however, the relatively high level of personal financing is a matter of concern. For personal financing, the ratio to total outstanding financing was 4.47 per cent in the third quarter of this year.
“that is close to twice that of credit card outstanding amounts.”
Wan Azizah Wan Ismail had earlier launched AKPK’S inaugural financial behaviour survey report at its Financial Literacy Symposium 2018 on thursday(Nov 15).
financial discipline starts at home
Wan Azizah also mentioned that parents, both the father and mother, have an important role to play in educating their children on financial discipline.
“Attitude is not developed through sitting for examinations or obtaining certificates,it has to be moulded over time.”
she said that at home, parents must play a role,an example is by giving children pre-conditions to receiving their daily pocket money.
she said for example, a school going child can be given RM3 a day by his parents, with a condition that 50 sen must be deposited into a penny bank before another RM3 is given the next day.
“With this, the attitude of not spending all what one receives will be inculcated in the child. This will also help develop another discipline which is to save before one spends.”
she said as financial guru and multi-billionaire Warren Buffett is often quoted as saying, “do not save what is left after spending , spend what is left after saving”.
3 out of 10 working Malaysians had to borrow for essential goods
The Debt Management and Counselling Agency (AKPK) survey has shown,one out of five working adults did not manage to save any money over the last six months.
survey also found that 3 out of 10 working adults had to borrow money to buy essential goods.
AKPK chief executive officer Azaddin Ngah Tasir said the majority involved either earned less than RM2,000 or were self-employed.
He said the main reason why many of them were unable to save was the high cost of living.
The survey, from January to July, involved more than 3,500 Malaysian working adults. Six advisers from public and private institutions of higher learning were engaged.