In the Central Bank’s Financial Stability Review released last September, findings showed that civil servants spent more than half of their monthly salaries on repaying debts. In Bank Negara’s box article entitled “Civil Servants’ Debt: Risks and Policy Considera­tions”, it notes that these high debt levels are even more apparent for those earning less than RM5,000 monthly. Almost half of the borrowings or 47% is for consumption purposes such as personal financing, motor vehicles, credit cards and others. This has resulted in the larger share of personal financing to civil servants’ total debt (34%), compared to the national level (15%). About two-thirds of civil servants earn less than RM5,000 per month,” it said.

Source: The Star June 08, 2019 01:35 UTC