The Credit Counselling and Debt Management Agency (AKPK) has disclosed that nearly RM1.9 billion in cumulative debt is shouldered by 53,000 individuals under the age of 30.
As of 2023, household debt had surged to RM1.53 trillion, amounting to 84.2% of gross domestic product, which is among the highest ratios in the region.
“This alarming figure indicates that households are increasingly relying on credit to finance their lifestyles and investments. If not carefully managed, such levels of debt can lead to long-term financial strain, reinforcing the critical role financial literacy plays in safeguarding financial health,” said Finance Minister II Amir Hamzah Azizan.
Amir Hamzah highlighted that the agency has also discovered that 28% of working adults have taken loans to acquire essential goods.
“The growing accessibility of personal loans, credit cards, and especially ‘buy now, pay later’ schemes is particularly worrying, especially among young adults. While these tools may offer convenience, a lack of understanding of their implications and discipline in managing commitments can quickly lead to unmanageable debt,” he said in a statement today.
He pointed out that according to the Organisation for Economic Cooperation and Development’s financial literacy survey, only 36% of Malaysians grasp basic financial concepts such as interest rates, inflation and risk diversification.
This statistic falls below the global average of 42%, placing Malaysia 26th out of 39 countries surveyed.
