Cover Image

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...

Full description

Saved in:
Bibliographic Details
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/48310/1/Selamah_Abdullah_Yusoff_et_al._%282015%29_-financial_fragility.pdf
http://irep.iium.edu.my/48310/
http://www.ukm.my/fep/jem/content/2015.html
http://dx.doi.org/10.17576/JEM-2015-4901-02
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.iium.irep.48310
record_format dspace
spelling my.iium.irep.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 REM 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
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
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/48310/1/Selamah_Abdullah_Yusoff_et_al._%282015%29_-financial_fragility.pdf
http://irep.iium.edu.my/48310/
http://www.ukm.my/fep/jem/content/2015.html
http://dx.doi.org/10.17576/JEM-2015-4901-02
_version_ 1643613342323965952
score 13.211869

Similar Items