PETALING JAYA: A recent survey has revealed that 73% of Malaysian youth were in debt and do not have sufficient capital for financial commitments, The Malaysian Insight reports.
The report cited a survey by UCSI University poll research centre, which highlighted several main reasons for youngsters to take up loans – financial constraints, inflation and adopting luxurious lifestyles.
UCSI academic Dr Hassanudin Mohd Thas Thaker said out of the 1,077 youngsters in the study, 73% have taken loans.
This indicates that about three-quarters of Malaysian youngsters do not have sufficient capital for financial commitments.
Although the number of borrowers among the youngsters is worrying, 83% of them could pay their loans on time.
According to the findings, the growth in the cost of living and insufficient savings (27%) are the primary causes of financial constraints, while a change in lifestyle is the third primary cause of financial constraints, he added.
“The change in lifestyle may have been necessary to some of the youngsters because a lot of things have changed during the pandemic.
“One of the examples are university students; the transition from physical to online classes required each student to have their own laptop and home wi-fi for them to join online classes, which indirectly affected their daily financial wellbeing,” Hassanudin reportedly said.
He also added that youngsters need more savings to begin a new chapter in their life, which later causes them to apply for loans.
