Bankruptcy and debt
Since affordability is an issue, social housing projects are often in the outskirts, denying access to public transport to those who sorely need it.
If they do try to buy property closer to public transport, isn’t that also going to raise their debt and put them at risk of defaulting?
Bankruptcy and debt are tied to one major problem that nobody seems to bring up – wages. The government believes paying someone RM1,100 a month – inclusive of allowances – is enough to lead a sustainable life.
Similarly, the government isn’t doing enough about sex education. Let’s face it, children are expensive. You could earn RM10,000 a month and still struggle to feed a family of 12 while calling it a “blessing” and hoping God will provide while living in poverty.
While I applaud the move to dish out 1Malaysia People’s Aid (BR1M) – similar to Brazil’s Bolsa Familia – there is one major difference. The latter is given monthly via bank transfers with the requirement that all recipients send their children to school and the children attend at least 85% of classes, and they are vaccinated as required.
The increasing debt and bankruptcy cases indicate the problem is systemic – people are buying things they can barely afford. With stringent bank regulations covering car loans, how is it that there seems to be an increase in bad debts and defaults?
Are people losing jobs, thus unable to service loans leading to defaults? After all, 2015 was a depressing year which saw oil and gas, airline and banking sectors cutting staff. Thus, unemployment insurance would have been welcome to assist Malaysians avoid defaulting and ending up bankrupt.
Of course, the government is now considering such an insurance scheme much to the concern of employers.
However, raising the threshold of debt may not be the best solution.
Comments: letters@thesundaily.com