UCSI Survey Finds Majority Of Malaysian Youths In Debt But Aware Of Loans Taken
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Despite having a large number of Malaysian youths in debt, a survey has shown that our youths are aware of the loans they take as well as the consequences that may follow if it is not paid.
According to a recent survey by the local university UCSI, 73% of 1,077 Malaysians between the ages of 18 and 40 are in debt and lack the funds to meet their financial obligations.
Young people often take out loans for a variety of reasons, according to a survey by the poll research centre at UCSI University, including financial difficulties, inflation, and adopting opulent lifestyles.
Hassanudin Mohd Thas Thaker, director of research and postgraduate studies in the Faculty of Business and Management at UCSI University, stated in a statement that these young Malaysians were also aware of the consequences of defaulting on their loans — proving that Malaysian youths do not apply for loans blindly.
“A total of 73 percent of youths understand the consequences that follow if they fail to pay their loans,” he said.
On the bright side, although the number of young people who are borrowers is concerning, 83 percent of them could pay back their loans on time.
Additionally, the UCSI poll also found 58 percent of Malaysian youths saying their financial status has been hurt post Covid-19.
The 58 percent who were affected by the pandemic may be due to unemployment, unstable income and the increase in commitments as the pandemic has affected a lot of companies and individuals in Malaysia, according to Hassanuddin.
UCSI also reported that their poll identifies rising living expenses and inadequate savings (27 percent) as the top two contributors, followed by changes in lifestyle, as the main causes of the youngsters’ financial difficulties.
Hassanuddin also noted that for students to enrol in online programmes, he said, “this needs each student to have their own laptop and home Wi-Fi facility, which indirectly affects their daily financial well-being.”
Finally, Hassanuddin pointed out inflation due to the country’s current financial crisis as another reason for the increase in the number of borrowers among the country’s youth.
According to him, there is constantly a discrepancy between supply and demand, which creates a persistent issue.
Among other reasons for taking out loans include 30 percent for vehicles, 28 percent for education, and 16 percent to buy houses.
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