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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 attr...

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Main Authors: Selamah Abdullah Yusof,, Rohaiza Abd Rokis,, Wan Jamaliah Wan Jusoh,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2015
Online Access:http://journalarticle.ukm.my/9026/1/jeko_49%281%29-2.pdf
http://journalarticle.ukm.my/9026/
http://www.ukm.my/fep/jem/content/2015.html
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spelling my-ukm.journal.90262016-12-14T06:48:45Z http://journalarticle.ukm.my/9026/ Financial fragility of urban households in Malaysia Selamah Abdullah Yusof, Rohaiza Abd Rokis, Wan Jamaliah Wan Jusoh, 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. Penerbit Universiti Kebangsaan Malaysia 2015 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9026/1/jeko_49%281%29-2.pdf Selamah Abdullah Yusof, and Rohaiza Abd Rokis, and Wan Jamaliah Wan Jusoh, (2015) Financial fragility of urban households in Malaysia. Jurnal Ekonomi Malaysia, 49 (1). pp. 15-24. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2015.html
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
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 Selamah Abdullah Yusof,
Rohaiza Abd Rokis,
Wan Jamaliah Wan Jusoh,
spellingShingle Selamah Abdullah Yusof,
Rohaiza Abd Rokis,
Wan Jamaliah Wan Jusoh,
Financial fragility of urban households in Malaysia
author_facet Selamah Abdullah Yusof,
Rohaiza Abd Rokis,
Wan Jamaliah Wan Jusoh,
author_sort Selamah Abdullah Yusof,
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 Penerbit Universiti Kebangsaan Malaysia
publishDate 2015
url http://journalarticle.ukm.my/9026/1/jeko_49%281%29-2.pdf
http://journalarticle.ukm.my/9026/
http://www.ukm.my/fep/jem/content/2015.html
_version_ 1643737654978674688
score 13.211869

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