Malaysians need to manage credit, finances for better future

KUALA LUMPUR – Malaysians should remain proactive and take a more informed view in managing their finances to plan for the future and road to recovery, given the economic uncertainties ahead of them, said information services company, Experian Information Services (Malaysia), reported Bernama.

Chief executive officer Dawn Lai noted that credit scores had weakened in the Covid-19 impacted 2020, particularly for individuals aged between 22 and 28 years old.

“However, comparing the credit risk grades of 2020 with 2018, we observed more improvements in the age groups of more mature Malaysians. Almost 70% of individuals aged 29-35 either maintained or improved their risk grades over the last three years,” she said in a statement on March 2.

Lai said that the various government initiatives and stimulus measures introduced have helped the credit risk scores which remained broadly robust despite a challenging 2020.

She cautioned that in the long term, as these interventions ease, the real impact may surface and affect the economy and consequently, business sustainability and jobs.

“We encourage Malaysians to start taking active control of their credit portfolios in 2021 as downside risks and uncertainties remain for the economy given the profound impact of the pandemic,” she said.

Meanwhile, the information services company noted that the broad digitalisation adoption by banks and consumers has resulted in a shift in the credit mix for Malaysians across all age segments over the last three years.

“Most consumers increased their use of short-term credit facilities like credit cards in 2020 because of physical restrictions during the Covid-19 impacted year, which accelerated digital banking and transactions,” it added.