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The Sun
19 hours ago
- Business
- The Sun
Corporate bodies urged to join PPZ-MAIWP for zakat distribution
KUALA LUMPUR: Corporate entities are encouraged to take part in the Federal Territories Islamic Religious Council's Zakat Collection Centre's (PPZ-WAIWP) programmes, which distribute donations and aid to asnaf and other needy groups. Minister in the Prime Minister's Department (Religious Affairs), Datuk Dr Mohd Na'im Mokhtar, said that the collaboration between PPZ-MAIWP and corporate bodies would streamline zakat distribution and ensure that the contributions reach their rightful recipients. 'I call on other companies to follow FGV Holdings Berhad's example in partnering with PPZ-MAIWP, to ensure that zakat funds genuinely reach those in need - which is the most important aspect,' he told reporters after officiating the PPZ-MAIWP and FGV Ziarah Kasih programme, here, today. Mohd Na'im, representing PPZ-MAIWP, received business zakat amounting to RM3.45 million for 2024, from the FGV Group, for the Federal Territory of Kuala Lumpur, in addition to donations worth RM125,000 distributed to 500 asnaf around Taman Wahyu 2. Also present were FGV chairman, Tan Sri Rastam Mohd Isa; PPZ-MAIWP chairman, Datuk Seri Amrin Awaluddin; and FGV Group chief executive officer, Fakhrunniam Othman. - Bernama
The Sun
a day ago
- Business
- The Sun
Household debt manageable with strong financial buffers
PETALING JAYA: Malaysia's household debt remains within manageable levels, standing at RM1.65 trillion as of March 2025 – equivalent to 84.3% of gross domestic product – with little change from the end of last year, according to the Finance Ministry. During Minister's Question Time in the Dewan Rakyat yesterday, Finance Deputy Minister Lim Hui Ying said household financial assets in the same period amounted to RM3.45 trillion, more than double the debt level. 'This provides a strong financial buffer for households and strengthens resilience against potential economic shocks,' she said, adding that all loans approved by financial institutions, including those to civil servants, are subject to Bank Negara Malaysia's policy document on Responsible Financing to maintain debt sustainability. The policy document has been in place since 2012. The framework assesses borrowers' repayment capacity based on a minimum net disposable income and a set Debt Service Ratio (DSR) limit with the median DSR for total household loans at a prudent 34% as of end-2024. 'Regulation 13 of the Public Officers (Conduct and Discipline) Regulations 1993 prohibits serious indebtedness and requires a minimum monthly net salary of 40%. Data from the Insolvency Department shows that between 2020 and June this year, 4,194 bankruptcy cases involving civil servants were recorded, which is just 0.3% of the 1.6 million-strong public service workforce.' Lim said support programmes remain in place to help households manage debt effectively, including advisory services and debt restructuring assistance offered by the Credit Counselling and Debt Management Agency for individuals facing repayment difficulties. Meanwhile, she said the Public Service Department is strengthening financial literacy among public officers through the Mind Transformation programme, which provides early guidance on personal financial management for new recruits. 'The government acknowledges that civil servants often require financial assistance, with measures and negotiations in place to help them restructure and manage debt. Meanwhile, the banking sector monitors borrowers under the DSR framework. We also recognise that the rising cost of living has affected some civil servants and the government has implemented the Public Service Remuneration System and increased salaries for public servants.' Additionally, Lim said allocations under the Payung Rahmah initiative help civil servants cope with living costs. 'As of March this year, housing loans made up 61.1% of total household debt – the largest share – with rising property prices posing a particular burden on civil servants. To address this, the government is implementing several affordable housing schemes, including the Residensi Madani and PR1MA programmes, targeting low and middle-income groups. The government remains committed to reviewing and improving such initiatives to ensure greater access to home ownership.'
New Straits Times
2 days ago
- Business
- New Straits Times
Opposition MP warns of 'debt trap' among civil servants
KUALA LUMPUR: An opposition MP has called on the government to address the rising debt among civil servants, with some middle-income individuals reportedly being approved for loans worth hundreds of thousands of ringgit. Abdul Latiff Abdul Rahman (PN-Kuala Krai) said the matter required urgent attention as it could drive civil servants into long-term debt traps. In a supplementary question to Deputy Finance Minister Lim Hui Ying, Latiff said the issue could also affect household financial stability. "Although you said the trend is still under control, if this happens to civil servants, it could open the door to corruption. With their current income, they will no longer be able to bear multiple loan repayments. "If it happens to the general public, there is concern they could fall prey to unlicensed moneylenders and loan sharks," he said. Latiff also asked whether the government planned to replace or stop personal financing in favour of purpose-specific financing to prevent the debt trap among civil servants from worsening. Lim, who is also the Tanjong MP, said household debt levels must be viewed holistically, taking into account household financial assets, which are significantly higher. "At the macro level, total household debt as of March 2025 stood at RM1.65 trillion, equivalent to 84.3 per cent of Gross Domestic Product (GDP). This shows little change compared with the end of 2024. "Therefore, household debt levels must be seen in a holistic manner, particularly considering that household financial assets are much higher, amounting to RM3.45 trillion in the same period. "In aggregate, household financial assets remain 2.1 times higher than debts, thus providing a strong financial buffer for households," she said. Commenting on the control of financial loans among civil servants, she said approvals given by financial institutions in the country were subject to the responsible financing practice policy document issued by Bank Negara Malaysia, in effect since 2012. Through this policy, she said, the government ensured household finances remained manageable in line with repayment capacity. "In general, financial institutions assess a borrower's capacity by taking into account a minimum net disposable income as well as the debt service ratio (DSR). As at the end of 2024, data showed the DSR was at a prudent level of 34 per cent. "There are also specific control measures for civil servants through Regulation 13 of the Public Officers (Conduct and Discipline) Regulations 1993, which stipulates that an officer must not be in serious debt, with net monthly salary not falling below 40 per cent," she said.
The Star
2 days ago
- Business
- The Star
4,194 civil servant bankruptcies recorded from 2020 to June 2025
KUALA LUMPUR: The Insolvency Department recorded 4,194 bankruptcy cases involving civil servants between 2020 and June 2025, about 0.3% of the nation's 1.6mil public sector workforce. Deputy Finance Minister Lim Hui Ying said the Credit Counselling and Debt Management Agency (AKPK) offers advisory services, financial management assistance and debt restructuring programmes for individuals facing serious financial difficulties. "For new officers, the Public Service Department conducts the Mind Transformation Programme, which provides early exposure to personal financial management to ensure they can manage debt prudently. "Civil servants are also bound by a rule requiring their net monthly salary to remain at least 40% of their gross income, to prevent them from falling into serious debt,' she said. She was responding to a question from Abdul Latiff Abdul Rahman (PN-Kuala Krai) on government measures to address the worrying trend of rising household debt, particularly among civil servants. As of March 2025, she said, Malaysia's household debt stood at RM1.65 trillion, or 84.3% of the GDP (Gross Domestic Product). "However, it remains manageable at the macro level, as household financial assets over the same period amounted to RM3.45 trillion, 2.1 times higher than total debt,' she added. On housing, the largest component of household debt, Lim said the government has introduced various affordable housing schemes, including Residensi Madani and PR1MA, taking into account specific situations such as in Johor Bahru, where the cost of living is high. — Bernama
The Sun
2 days ago
- Business
- The Sun
Civil servant bankruptcies in Malaysia hit 4,194 cases from 2020 to 2025
KUALA LUMPUR: The Malaysian Department of Insolvency reported 4,194 bankruptcy cases among civil servants between 2020 and June 2025. This figure represents 0.3 percent of the country's 1.6 million public sector workforce. Deputy Finance Minister Lim Hui Ying highlighted the role of the Credit Counselling and Debt Management Agency (AKPK) in assisting those with financial struggles. The agency provides advisory services, financial management support, and debt restructuring programmes. She added that new civil servants undergo the Mind Transformation Programme for early financial literacy training. The initiative aims to instil prudent debt management habits from the start of their careers. Civil servants are also subject to a rule ensuring their net monthly salary remains at least 40 percent of gross income. This measure helps prevent severe debt accumulation among public sector workers. Lim was responding to Abdul Latiff Abdul Rahman's query on government actions to tackle rising household debt, especially among civil servants. As of March 2025, Malaysia's household debt reached RM1.65 trillion, equivalent to 84.3 percent of GDP. Despite this, Lim noted that household financial assets stood at RM3.45 trillion, 2.1 times higher than total debt. Housing remains the largest component of household debt, accounting for 61.1 percent. The government has introduced affordable housing schemes like Residensi Madani and PR1MA to ease financial burdens. These programmes consider regional cost-of-living differences, including high expenses in Johor Bahru. - Bernama
