AN MCA Youth leader has expressed concern over recent reports highlighting how many young Malaysians are falling into a growing cycle of debt.
Its deputy chairman Mike Chong Yew Chuan noted that rising living costs, easy access to credit cards, personal loans and Buy Now, Pay Later (BNPL) schemes have led to many young adults committing a large portion of their salaries to debt repayment, leaving little room for savings or financial security.
“While financial institutions and regulators must continue improving safeguards, young adults themselves must also develop stronger money management habits,” he emphasised.
“Financial literacy and discipline are essential life skills that should be practised as early as possible.”
According to Chong, youths entering the working world should adopt the habit of tracking their monthly expenses, adding that many people underestimate how much they spend on small purchases, online shopping, or lifestyle spending.
By keeping a simple budget that records income and expenditure, he said individuals can clearly see where their money is going and identify areas where spending can be reduced.
“It is also important to distinguish between needs and wants. Essential expenses such as rent, food, transport and utilities should always take priority.
“Impulse purchases, especially during online sales or through BNPL schemes, can easily accumulate into long-term financial burdens if not carefully controlled.”
Chong went on to advise young adults to limit their reliance on credit facilities, pointing out that while credit cards and BNPL services may provide short-term convenience, they should not be tools for financing daily living expenses.
He stressed that whenever possible, purchases should be made using available income rather than borrowed money.
“Another key step is to build an emergency fund. Financial planners often recommend saving at least three to six months of living expenses. Even small, consistent monthly savings can gradually build a safety buffer that reduces the need to rely on loans when unexpected situations arise,” he said.
“In addition, young workers should consider seeking financial guidance and counselling when necessary.
“Professional advice can help individuals restructure debts, improve repayment strategies, and regain financial control before problems become more serious.”
Chong went on to highlight the need for financial education to be strengthened through schools, universities and community programmes so that underage Malaysians enter adulthood with a better understanding of budgeting, savings and responsible borrowing.
“Avoiding a debt trap is not only about earning more income. It is about managing finances wisely. With stronger financial discipline, careful planning and responsible spending habits, young Malaysians can build a more stable and secure financial future.”
On March 12, Deputy Finance Minister Liew Chin Tong revealed that about 40% of BNPL transactions in the country are made by Malaysian youths.
He said this highlighted a worrying trend of younger consumers being overly dependent on BNPL for their daily needs. ‒ March 17, 2026
Main image: HRM Asia
