PETALING JAYA: Tackling digital debt, the house-poor phenomenon, and empowering people through a strengthened economy are key areas to address cost of living issues, says a Parliament Special Select Committee (PSSC) chairman.
Datuk Mohd Shahar Abdullah - who chairs the PSSC on Finance and Economy – said that he is concerned about increased access to online credit services like "Buy Now Pay Later" (BNPL) schemes.
"While it offers flexibility for instalment purchases, it can lead individuals into continuous debt if done without careful financial management."
"More concerningly, essential goods can now be purchased through BNPL, indirectly increasing financial burdens on the rakyat without them realising," he said on Saturday (Feb 15).
He urged for stricter regulations for the industry, alongside enhancing the public's financial literacy.
"This ensures individuals can manage their finances more wisely and avoid falling into the 'Digital Debt Trap,' which could have long-term consequences on their financial stability," he added.
On the house-poor phenomenon, the Paya Besar MP said inflation for housing, utilities, and gas stood high at 3.2% although overall inflation remained controlled at 1.8% last year.
"This leads to a situation where those owning homes or renting are forced to spend a significant portion of their income on mortgage payments, rent, and related expenses such as utilities and maintenance," said Mohd Shahar, who is also the Backbenchers Club chairman.
The situation, he said, poses a bigger challenge for these groups to cover other essential needs, adding that it is especially burdensome for low and middle-income groups.
He said fair and transparent policies are needed to regulate rental rates, citing how their absence allows property owners to increase rents without regulations and disregard tenants' ability to pay.
"Guidelines should consider localities and tenants' financial capacities while ensuring owners receive reasonable returns."
"A quick and effective rental dispute resolution mechanism should be implemented, enabling both property owners and tenants to enjoy their rights in a fair manner," he added.
On another matter, he said comprehensive and sustainable structural change is needed to create a more prosperous and resilient society.
Citing the recent proposal by Khazanah Research Institute (KRI) to reclassify households into B20, M50, and T30, Mohd Shahar said this would be a relevant step forward.
"This way, more accurate and effective policies can be designed to assist those truly in need. It would also provide a clearer picture of the nation’s economic disparities," he said.
He also referenced Malaysia's household debt to gross domestic product ratio, which stood at 84.2% in 2023, amounting to RM1.53mil.
"If this trend continues, it may lead to a financially vulnerable society, especially during economic instability or financial crises," he said.
