Turning the Tide: Holistic Approaches to Reducing Overindebtedness in Malaysia

Ibtisam @ Ilyana Ilias, Mazlina Mahali, Nadzratun Naim Hammad Azizi, Noraiza Abdul Rahman and Sarah Munirah Abdullah
Additional contact information
Ibtisam @ Ilyana Ilias: Faculty of Law, Universiti Teknologi MARA, Shah Alam Selangor 40450, Malaysia
Mazlina Mahali: Faculty of Law, Universiti Teknologi MARA, Shah Alam Selangor 40450, Malaysia
Nadzratun Naim Hammad Azizi: Centre for Commercial Law & Justice, Sunway Business School, Sunway University
Noraiza Abdul Rahman: Faculty of Law, Universiti Teknologi MARA, Shah Alam Selangor 40450, Malaysia
Sarah Munirah Abdullah: Faculty of Law, Universiti Teknologi MARA, Shah Alam Selangor 40450, Malaysia

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 10, 506-523

Abstract: Overindebtedness impacts not only individual well-being but also the financial stability of nations. This study critically explores the current mechanisms addressing overindebtedness in Malaysia. Utilising a qualitative content analysis approach, the study meticulously examines key resources, including the Annual Reports of the Central Bank of Malaysia and the Credit Counselling and Debt Management Agency, as well as the Guidelines on Responsible Financing, alongside academic articles and media reports. The findings reveal that Malaysia employs a multifaceted approach to combat overindebtedness, striking a balance between preventive measures and post-bankruptcy remedies. These strategies include enhancing consumer financial literacy through comprehensive education programs and providing financial advisory services to consumers. The regulatory framework emphasises responsible lending, mandating assessments of borrowers’ suitability and affordability to prevent unsustainable debt accumulation. The Credit Counselling and Debt Management Agency also offer debt management programs, while the Insolvency Act 1967 provides legal recourse for financially distressed individuals, including voluntary arrangement and automatic discharge after three years. This study concludes that the Malaysian government, particularly the relevant regulators, have established numerous strategies to mitigate the adverse effects of overindebtedness, addressing pre- and post-bankruptcy scenarios.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... issue-10/506-523.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... tedness-in-malaysia/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:8:y:2024:i:10:p:506-523

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().