KUALA LUMPUR – Experian Malaysia has recently released its first annual State of Credit 2021 Report on Consumers. The report looks at the credit performance of consumers across Malaysia, highlighting consumer credit scores and borrowing behaviours in relation to credit.
“The pandemic has severely impacted the Malaysian economy, reversing growth, and placing many consumers in financially vulnerable positions. This has led to financial health taking centre stage among Malaysians as they navigate the uncertain circumstances surrounding employment and the economy.
“Contrary to this prevailing sentiment, Experian’s consumer credit score – Experian i-SCORE (i-SCORE) which is a numerical indication of an individual’s credit worthiness at a point in time – has seen a slight lift, with the average credit score rising 18 points from 601 in 2019 (before pandemic) to 619 in 2021, the highest average i-SCORE over the last 4 years,” said Experian in a statement.
This trend proposes that most consumers have managed to maintain their credit repayments over the last 2 COVID-19-impacted years.
“This performance indicates that Bank Negara Malaysia’s intervention through loan moratoriums and other support measures may have contributed positively to this trend. It also suggests that there may have been behavioural changes among Malaysians towards conservative spending during this challenging economic climate,” it added.
This is one of the key findings in Experian Malaysia’s first annual State of Credit 2021 Report on Consumers. This report spotlights how Malaysians, age 22 and older are managing personal finances over the past 4 years.
For relevant ‘before and after’ context, the report features data from 2018 and 2019 pre-pandemic years, the 2020 pandemic year, and until the third quarter of 2021.
“To conclude, Experian’s State of Credit Report 2021 underlines that younger Malaysians may need greater financial assistance in the form of refinancing together with financial education as they demonstrate the greatest weakness in scores and payments,” it said.