00:00The root cause of household debt can be traced back to the detrimental habit of spending
00:06way beyond one's means.
00:08Fortunately, the tendency to overspend can be addressed by simply improving financial
00:14literacy among consumers, an area in which the government has already made significant
00:19investments.
00:21Set up in 2006, the Credit Counselling and Debt Management Agency is tasked with educating
00:27the public on ways to budget and manage their finances.
00:31Its debt management programs help households consolidate and restructure their debts, potentially
00:37reducing unnecessary monthly payments and defaults.
00:41Prime Minister Anwar Ibrahim also announced an initial allocation of RM50 million to the
00:46Madani Youth Financial Literacy Programme in August.
00:50Aside from enhancing financial literacy, increasing access to credit has given M40 and B40 individuals
00:57the assistance they need to elevate their businesses to the next level without going
01:02into debt.
01:04For example, Budget 2024 allocated RM1.4 billion for Bank Simpanan Nasional to provide micro-loans
01:11to hawkers and small entrepreneurs.
01:14Another RM313 million was allocated under the National Entrepreneurial Group Economic
01:20Fund to finance small traders such as batik and craft operators.
01:25The government's efforts have been proven successful in a recent study by Ringgit Plus,
01:30which showed that 47% of Malaysians reported better financial conditions than in 2023.
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