Bulk of salary goes to repaying debts

At 9.07 am(0107 Malaysian tme), the local unit stood at 4.1740/1770 against the greenback from Wednesday's close of 4.1730/1760.

PETALING JAYA: Civil servants spend more than half of their monthly salaries repaying debts, leaving them with limited financial buffers to weather shocks, according to a study by Bank Negara.

The central bank’s Financial Stability Review noted in its box article titled “Civil Servants’ Debt: Risks and Policy Considera­tions” that this is more apparent in those earning less than RM5,000 monthly.