MALAYSIANS ADVICED TO SAVE 10% OF INCOME TO FACE HARD TIMES?

KUALA LUMPUR, Malaysia -  Domestic Trade, Cooperatives and Consumerism Minister Datuk Hamzah Zainuddin(photo) said due to the uncertain economic outlook, spending must be carefully managed.

Save at least 10% of your monthly income to cushion yourself against unexpected hardship, the Government has advised.

“We need to change our lifestyle and must know how to live within our means.

“If it is possible, you should allocate at least 10% of your income and put it aside so that you can use it during emergencies,” he told reporters at a ringgit management symposium organised by Umno Youth and the Credit Counselling and Debt Management Agency (AKPK) here yesterday.

The event was aimed at educating youths on the importance of financial management and giving comprehensive knowledge in personal finance.

• Hamzah said the Government had come up with initiatives including for those identified as the B40 group to cope with the high cost of living.
• “We are aware of the situation on the ground. So we have the BR1M cash handouts for the poor,” he added.
• At the event, AKPK revealed its latest figures that over 25,000 Malaysians under the age of 35 have been declared bankrupt over the past five years.
• Umno Youth Young Professionals Bureau chief Shahril Hamdan said the rate was alarming and urged the Government to find a solution to ease the burden faced by youths.

“For those who are not bankrupt, they are still burdened with high debt.

“We find that most youths below the age of 35 are also unable to service their debt as it exceeds the standard 30% of their monthly income,” he added.

Shahril said Umno Youth will raise the issue with the Government after identifying short- and long- term solutions.

The debt mostly involved housing loans, credit card bills and personal loans.

Source: The Star