Pawnbroking profits jump as households feel the pinch

The pawnbroking industry’s value is forecast to grow from RM9bil in 2019 to above RM25bil in 2025 and hit RM34.4bil in 2027.

DESPITE inflation and unemployment remaining low and a higher mandated minimum wage, the rising cost of living appears to be putting some sections of Malaysian society under financial stress.

Subsidy rationalisation measures and higher sales and service taxes may be eating into disposable incomes, leading more people to pawn items for cash judging from the financial performance of Bursa Malaysia-listed pawn brokers.