fbpx
Connect with us

News

Report: 60% of Young M’sians are Bankrupt Because They Don’t Know How to Manage Money

Published

Finance Minister Says Many Young M'Sians Are Bankrupt Because They Lack Financial Literacy - World Of Buzz
Source: The Atlantic

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

Many young Malaysians are going bankrupt and it’s all because of poor financial literacy, says Finance Minister Lim Guan Eng in a report by the Star.

In a speech given earlier today (4 March) during the launch of ‘Belanjawanku – Malaysian Individual and Family Expenditure Guide’, he details the issue:

“A study by S&P Global Literacy Financial in 2014 reported that financial literacy rate in Malaysia is only at 36%, compared with 59% in developed countries. The low financial literacy rate is among the factors that have contributed towards high levels of debt – including worrying bankruptcy problems – among the youth.

Finance Minister Says Many Young M'sians Are Bankrupt Because They Lack Financial Literacy - World Of Buzz 1

Source: borneo post

He cited statistics between 2013 to 2017, saying that a total of 100,610 Malaysians were declared bankrupt, with 60% of them being between 18 and 44 years old.

He also noted that older citizens are also facing daunting financial challenges, especially in regards to retirement. The Finance Minister noted that estimates by the Employees Provident Fund (EPF) show that each person needs at least RM240,000 saved by age 55 in order to retire comfortably.

“However, based on the EPF 2017 Report, active contributors aged 54 have an average savings of only RM214,000 in their accounts.”

He continues with the concerning report saying, “What is even more worrying is that two-thirds of contributors age 54 only have RM50,000 and below in their EPF accounts in 2015,” which is a far cry from the recommended savings threshold.

Finance Minister Says Many Young M'sians Are Bankrupt Because They Lack Financial Literacy - World Of Buzz 2

Source: the atlantic

Guang Eng noted how the inadequate savings would run out in five years after retirement at age 60, especially given the average life-span of Malaysians is 75 years old.

He concludes that Malaysians must improve their financial knowledge in order to make smart financial decisions such as spending and investments.

You can take a look at the Belanjawanku Expenditure Guide here.

What do you guys think? Do you feel young Malaysians have enough financial knowledge? Do you feel that’s why there are so many bankrupt youths? Let us know in the comments!

 

Also read: LGE Doesn’t Mind Being the ‘Unpopular’ Finance Minister as He’s Saving the Country

Lge Says He's Fine Being The 'Unpopular' Finance Minister, But He's Saving The Country - World Of Buzz


Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

My Post 2022 06 30T111452.423 My Post 2022 06 30T111452.423
News4 hours ago

M’sian Couple Gets Into Accident & Steals Road User’s Car To Flee, Leaving Their Son’s Body Behind

After getting into an accident on Jalan Sungai Kelamah-Jelai-Gemas, Negeri Sembilan, a couple decided to leave the body of their...

Collage 15 3 Collage 15 3
News22 hours ago

149 Immigrants Reportedly Die In Sabah Detention Depot In Last 18 Months, Politician Responds

Recently, a report by the Indonesian NGO titled ‘Like In Hell’ claims that immigrants held at a detention depot in...

My Post 2022 06 29T171355.246 My Post 2022 06 29T171355.246
News23 hours ago

WATCH: Group In Sri Petaling Riot & Damage Cars In Fight, PDRM Investigates

Twenty individuals suspected of being involved in a fight on Monday at Jalan Radin Bagus, Sri Petaling, are being hunted...

Collage 13 4 Collage 13 4
News2 days ago

Blood Donation Campaign in JB Allegedly Gives Away Pork-Flavoured Instant Noodles, PDRM Investigates

A present must occasionally be appropriate to prevent any unintended misconceptions. A recent blood drive in Johor Bahru came under...

Collage 10 4 Collage 10 4
News2 days ago

M’sian Suffocates His 16-Year-Old Lover To Death With A Pillow Out Of Jealousy; PDRM Arrests Him

A healthy relationship is made up largely of trust and understanding in addition to communication, which is another essential component....

Pm Shirt Pm Shirt
News4 days ago

“That’s my salary for 3 months,” Netizens React To This RM6900 Burberry Shirt That The PM Wears

Netizens are talking about Malaysia’s prime minister Ismail Sabri’s shirt again, this time, it’s an RM6,900 red shirt from Burberry....

Feat Image Largest Subsidies Feat Image Largest Subsidies
News4 days ago

Finance Minister: Govt To Give RM77.3 Billion In Subsidies For The Rakyat This Year, Largest In History

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz has revealed that the projected consumption subsidy expenditure so far for 2022...

Subs Ft Subs Ft
News4 days ago

“Do not remove subsidy or we will take it to the streets,” IIUM & UM Student Unions To The Govt

In a joint statement, the IIUM Student Union and University Malaya Students’ Union urge the government to eliminate the action...

Announcement

Latest Videos



TRENDING TODAY