Financial fragility of urban households in Malaysia

Household debt in Malaysia has been on an upward trend and increasing at a relatively fast pace. This study provides an in-depth micro analysis of the current Malaysian urban households’ vulnerabilities by examining the extent of their ability in dealing with financial shocks and factors that attrib...

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Main Authors:	Abdullah Yusof, Selamah, Abd. Rokis, Rohaiza, Wan Jusoh, Wan Jamaliah
Format:	Article
Language:	English
Published:	Universiti Kebangsaan Malaysia 2015
Subjects:	HB848 Demography. Population. Vital events
Online Access:	http://irep.iium.edu.my/48310/ http://irep.iium.edu.my/48310/ http://irep.iium.edu.my/48310/ http://irep.iium.edu.my/48310/1/Selamah_Abdullah_Yusoff_et_al._%282015%29_-financial_fragility.pdf

id	iium-48310
recordtype	eprints
spelling	iium-483102017-08-03T01:34:58Z http://irep.iium.edu.my/48310/ Financial fragility of urban households in Malaysia Abdullah Yusof, Selamah Abd. Rokis, Rohaiza Wan Jusoh, Wan Jamaliah HB848 Demography. Population. Vital events Household debt in Malaysia has been on an upward trend and increasing at a relatively fast pace. This study provides an in-depth micro analysis of the current Malaysian urban households’ vulnerabilities by examining the extent of their ability in dealing with financial shocks and factors that attribute to their financial fragility. Using a recent strictly random sample, it is found that Malaysian urban households are financially vulnerable. Only 10 percent of the households are resilient to shocks related to unemployment, physical disability, divorce, death, or changes in interest rate or stock market. More than a fifth of the households are not able to survive for at least three months if their income is cut off. Additionally, more than a fifth of these households do not have enough savings or any other source to turn to if there is a need to raise RM10,000 within a short period. Household income significantly affects a household current financial situation, while those with better financial knowledge and higher levels of education are less likely to be in asset poverty. The inability to cope with financial shocks differs across ethnic groups partly due to the wealth disparity and access to sources of funds. Initiatives must be undertaken to assist the households in facing these challenges and for them to exercise financial prudence. Additionally, household debt must be closely monitored to ensure that it is sustainable. Universiti Kebangsaan Malaysia 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/48310/1/Selamah_Abdullah_Yusoff_et_al._%282015%29_-financial_fragility.pdf Abdullah Yusof, Selamah and Abd. Rokis, Rohaiza and Wan Jusoh, Wan Jamaliah (2015) Financial fragility of urban households in Malaysia. Jurnal Ekonomi Malaysia, 49 (1). pp. 15-24. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/2015.html http://dx.doi.org/10.17576/JEM-2015-4901-02
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB848 Demography. Population. Vital events
spellingShingle	HB848 Demography. Population. Vital events Abdullah Yusof, Selamah Abd. Rokis, Rohaiza Wan Jusoh, Wan Jamaliah Financial fragility of urban households in Malaysia
description	Household debt in Malaysia has been on an upward trend and increasing at a relatively fast pace. This study provides an in-depth micro analysis of the current Malaysian urban households’ vulnerabilities by examining the extent of their ability in dealing with financial shocks and factors that attribute to their financial fragility. Using a recent strictly random sample, it is found that Malaysian urban households are financially vulnerable. Only 10 percent of the households are resilient to shocks related to unemployment, physical disability, divorce, death, or changes in interest rate or stock market. More than a fifth of the households are not able to survive for at least three months if their income is cut off. Additionally, more than a fifth of these households do not have enough savings or any other source to turn to if there is a need to raise RM10,000 within a short period. Household income significantly affects a household current financial situation, while those with better financial knowledge and higher levels of education are less likely to be in asset poverty. The inability to cope with financial shocks differs across ethnic groups partly due to the wealth disparity and access to sources of funds. Initiatives must be undertaken to assist the households in facing these challenges and for them to exercise financial prudence. Additionally, household debt must be closely monitored to ensure that it is sustainable.
format	Article
author	Abdullah Yusof, Selamah Abd. Rokis, Rohaiza Wan Jusoh, Wan Jamaliah
author_facet	Abdullah Yusof, Selamah Abd. Rokis, Rohaiza Wan Jusoh, Wan Jamaliah
author_sort	Abdullah Yusof, Selamah
title	Financial fragility of urban households in Malaysia
title_short	Financial fragility of urban households in Malaysia
title_full	Financial fragility of urban households in Malaysia
title_fullStr	Financial fragility of urban households in Malaysia
title_full_unstemmed	Financial fragility of urban households in Malaysia
title_sort	financial fragility of urban households in malaysia
publisher	Universiti Kebangsaan Malaysia
publishDate	2015
url	http://irep.iium.edu.my/48310/ http://irep.iium.edu.my/48310/ http://irep.iium.edu.my/48310/ http://irep.iium.edu.my/48310/1/Selamah_Abdullah_Yusoff_et_al._%282015%29_-financial_fragility.pdf
first_indexed	2023-09-18T21:08:33Z
last_indexed	2023-09-18T21:08:33Z
_version_	1777411097901400064

Financial fragility of urban households in Malaysia

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