MELAKA: At least 1,900 youths in Melaka, aged between 20 and 30, have sought help from the Credit Management Programme of the Credit Counselling and Debt Management Agency (AKPK) as of Dec 31, with a total debt of RM138mil.
Melaka AKPK head, Mohammad Farid Fadzi, said the largest group of young clients at the branch were those earning between RM2,000 and RM4,000 per month, with a total of 931 people and a total debt of about RM65mil.
He explained that the high cost of living, which has led to the inability to manage debt and affected the quality of life, is one of the main reasons why these youths seek assistance with their repayment plans, accounting for 52% of cases.
“The second reason is young people facing unexpected financial commitments (11%), with a total debt of around RM14mil, along with job loss (6%).
“What is most important is to identify the reasons young people are burdened with high debt and the steps they can take to get out of debt,” he told Bernama.
Mohammad Farid emphasised the importance of a disciplined approach to financial planning, including understanding basic needs, practising savings, and developing personal financial management skills to face current financial challenges.
Finance Minister II Datuk Seri Amir Hamzah Azizan was quoted recently as saying that 53,000 individuals under the age of 30 owed RM1.9bil.
He said 28% of Malaysian working adults have borrowed money to buy essential goods.
He expressed concern over the easy access to personal loans, credit cards and the “buy now, pay later” scheme among the young adults.
Amir Hamzah also said the Organisation for Economic Cooperation and Development financial literacy survey revealed that only 36% of Malaysians understand basic financial concepts such as interest rates, inflation and risk diversification.
