In a recent study released by Agensi Kaunseling dan Pengurusan Kredit (AKPK), an alarming 28% of adults needed loans to buy essential goods.
Reported in Malaysiakini, Finance Minister Lim Guan Eng said that 18% of working adults were unable to save in the past six months.
Guan Eng said, “This is a worrying trend that must be addressed in this Malaysia Baru spirit.”
“Statistics provided by AKPK also showed that the number of financial counselling cases provided by the agencies to Malaysians was highest in Kuala Lumpur, Penang and Johor Bahru.”
He attributes the rise in the cost of living as a reason for the percentage.
Additionally, AKPK reported that in most cases, individuals seeking counselling are mostly those who have been heavily saddled with credit card debt.
Guan Eng also shed light on the lack of financial literacy among Malaysians.
Telecommunication fraud cases alone amounted to RM162 million, with 8,313 cases of fraud reported last year, Guan Eng said that it is a cause of concern as to why Malaysians are continuously falling prey to frauds and scams.
“The enormous amount involved also points to a lot of lost opportunities to invest wisely or accumulate wealth. Given the alarming red flags, it is therefore crucial that we as a nation step up our financial literacy and increase our efforts to learn smart ways to manage our finances.”
“We need to particularly invest in a regulated environment, instead of falling victim to get-rich-quick schemes or fraudulent companies and investment scams.”
The figures are worrying indeed as rising living costs continue to become a deciding factor in making financial decisions.
We urge Malaysians to refer to AKPK for guidance and assistance, as financial education will allow Malaysians to have the skills, knowledge and confidence in making informed decisions about all financial resources.
Also read: Report: 2 Out of 10 Malaysians Couldn’t Save a Single Cent in the Last 6 Months