There is clear evidence from agency reports that many young workers distress. Reports from the Insolvency Department and from the Credit Counselling and Debt Management Agency (AKPK) indicates the seriousness of the problem of young workers facing bankruptcy as well as young executives seeking counseling or debt management services after getting into serious financial or debt problems.

Anecdotal evidence from other studies also gives a rather bleak picture of the financial behaviors and situation of young workers.

Clearly, this problem has to be addressed. Yet, to address this issue effectively, two key components are needed; data and intervention.

Unfortunately, at the current time relevant and timely data of the financial habits and behaviors of Malaysian young workers is lacking. There is no baseline data that can be the basis of developing effective programs as well as evaluating the effectiveness of current programs.

It is to address this gap the CRRC has been tasked by ERA Consumer to undertake this survey to establish a profile of the knowledge, habits and behaviors of young executives. With this baseline data, more targeted and effective programs can be designed based on the actual scenario and based on the actual needs of the target community.

The young workers community has been selected for this survey as they are at a stage that they are particularly vulnerable to media and peer influence as well as have to make many key personal decisions such as employment, marriage and children and the related key financial decisions related to spending, saving, insurance, investments, purchasing of major assets like house and car as well as retirement.

The data shows a worrying pattern of many young workers making wrong choices and thus getting into financial problems.

Thus it is crucial that any intervention targets this group with the appropriate content and methodology. More important stil critical evaluation must be undertaken to ensure that these program clearly achieve their desired outcomes.

This survey is a contribution towards providing base-line data for financial education planning as well as financial education evaluation.

Dato’ Paul Selva Raj
Yu Kin Len
Consumer Research and Resource Centre (CRRC)