Most M’sians debt-ridden due to uncontrolled spending

KUALA LUMPUR: A research by the Universiti Malaya Social Well-being Research Centre (SWRC) shows that the majority of the people of this country are burdened with debt due to uncontrolled spending.

SWRC director Professor Emeritus Datuk Dr Norma Mansor said the one-year study found that the spending of the majority of the people exceeded their financial capabilities.

“We have data showing that many people in this country are in debt, household debt to the GDP ratio is very high, more than 80 per cent,” she said in the Bernama News Channel (Astro 502) interview programme “Upsound” which would be aired tonight at 8.30 pm.

She said SWRC had also published a “BELANJAWANKU 2019” guidebook to instill spending management discipline specifically for residents in the Klang Valley.

“The goal is part of Financial Education to teach Malaysians to shop with discipline, because this is the result of why it is necessary for BELANJAWANKU 2019,” she added.

Commenting further, Dr Norma said the guidebook not only took into account the financial background or an individual’s monthly pay, in fact it could be used as a guide for suitable spending following the stipulated categories.

‘’BELANJAWANKU 2019 is not only targeted for the use of those earning RM2,000, RM3,000 or RM4,000, as it is the proposal (spending) which we hope can be made use of by Malaysians specifically those staying in the Klang Valley,’’ she said.

The guidebook, which was produced with the co-operation of the Employees Provident Fund (EPF) and SWRC was launched by the Minister of Finance Lim Guan Eng on March 4.

The guidebook listed six categories and monthly expenditure estimates, namely, RM1,870 for a single person using public transportation, RM2,490 for a single person with a vehicle and RM4,420 for a childless married couple.

She said the proposed expenditure for a couple with one child was RM5,730 while RM6,620 was suggested for a couple with two children while the expenditure proposed for a senior citizen was RM3,090 a month.

The expenditures encompassed 10 items, namely, Food, House, Vehicle, Health Care, Self Care, Utility, Annual Expenditure, Spending following Discretion, Social Participation and Child Care, she said.

The Upsound Programme could be watched on Wednesday, 8:30 pm on Astro 502 channel, unifi TV 631, MYTV 121, iflix and Bernama News Channel Youtube Page.

The programme would be repeated at 8:30 am on Thursday, 4 am and 4:30 pm on Friday, 8:30 pm Saturday, 7:30 pm Sunday, 4:30 pm Monday and 12:30 am Wednesday. Bernama