The National Cooperative Movement of Malaysia Berhad (Angkasa) has revealed that the number of civil servants in our country who are taking out personal loans has increased by 10% ahead of the upcoming Hari Raya Aidilfitri celebration.
Angkasa president Datuk Seri Abdul Fattah Abdullah asserted that 70,000 civil servants are taking out personal loans during this festive season, a significant increase compared to the 60,000 observed during non-festive months.
70,000 civil servants are taking out personal loans for the upcoming Hari Raya Aidilfitri celebration
For illustration purposes
Abdul Fattah was quoted by Utusan as saying that the 10% increase is in line with the yearly trend which sees personal loan applications by civil servants increasing during festive seasons and urgent financial needs.
The latter includes during the start of the school semester, admission of students to higher education institutions and expenditure for daily needs.
For illustration purposes
The Angkasa president added that many civil servants, especially those with lower and middle incomes, lacked any emergency savings and were forced to take out loans as a short-term solution.
Furthermore, the desire of these individuals to celebrate Aidilfitri lavishly also drives them to spend beyond their means.
Abdul Fattah elaborated,
“The costs of Aidilfitri preparations, such as buying new clothes, preparing special dishes, giving out ‘duit raya’ money packets and going back to their hometowns, becomes additional burdens that they have to bear, especially for those with families,”
Datuk Seri Abdul Fattah Abdullah
With that in mind, he revealed that Angkasa manages more than 800,000 civil servants in Malaysia who have taken loans through the salary deduction system, with the total salary deductions reaching between RM1.2 billion and RM1.5 billion per month.
Previously, we shared how personal loans have consistently been the main reason for Malaysians going bankrupt, with almost half of insolvency cases from 2020 to 2024, specifically 49.11% or 15,413 cases, were due to personal loans.
During the same period, a total of 3,800 civil servants in Malaysia went bankrupt.
So, what do you guys think of the Angakasa president’s statement? Share your thoughts with us in the comments.
Also read: Study: M’sians Spent RM12 Billion Using ‘Buy Now Pay Later’ in 2024, 73% of Users are from B40 Group
