Consumer Financial Vulnerabilities in Malaysia: Issues, Trends and Psychological Aspects

This book explores Malaysian consumers' financial vulnerabilities, including over-indebtedness, retirement planning, fraud victimization, and underinsurance. It analyzes the factors influencing these vulnerabilities and provides strategic recommendations to promote positive financial behaviors and attitudes.

Format: Paperback / softback
Length: 224 pages
Publication date: 30 May 2022
Publisher: Taylor & Francis Ltd

This comprehensive book delves into four critical aspects of Malaysian consumers' financial vulnerabilities, shedding light on the underlying issues and challenges they face. Firstly, it explores the pervasive problem of over-indebtedness resulting from excessive reliance on consumer financing, highlighting the need for responsible financial management practices. Secondly, the book investigates why Malaysians are ill-prepared for their golden years in terms of retirement planning and savings, examining the factors contributing to this vulnerability. Thirdly, it delves into the issue of financial fraud victimization among Malaysian consumers, shedding light on the prevalence of scams and fraudulent activities and the need for enhanced consumer protection measures. Lastly, the book analyzes the reasons why Malaysians are underinsured despite the distinct benefits of life insurance, examining the barriers to insurance adoption and the potential solutions to address this issue.

Drawing on secondary data from reputable government agencies such as Bank Negara Malaysia, Employees Provident Fund, Royal Malaysian Police, and the Department of Statistics Malaysia, each chapter presents statistical trends and insights into the four financial vulnerabilities. In-depth analyses of the literature reveal three broad psychological domains (cognition, motivation, and disposition) and specific psychological factors (e.g. over-confidence, self-control, social norms, and financial literacy) that significantly influence consumers' financial decisions.

The four financial vulnerabilities investigated in this book align directly with the strategic outcomes of the Malaysian National Strategy for Financial Literacy 2019–2023 (MNSFL), a five-year plan aimed at elevating the financial literacy of Malaysians. By addressing these vulnerabilities, the book offers valuable recommendations for relevant policymakers to promote positive financial behaviors and rational attitudes among consumers.

This book will be a valuable resource for policymakers, researchers, and individuals interested in economic psychology and behavioral finance. It provides a comprehensive understanding of the financial challenges faced by Malaysians and offers practical solutions to address them. By promoting financial literacy and awareness, policymakers can create a more secure and prosperous financial landscape for all Malaysians.

Dimension: 234 x 156 (mm)
ISBN-13: 9780367630539