Consumer Finance Vulnerabilties in Malaysia
Issues, Trends and Psychological Aspects
- Available for pre-order. Item will ship after November 1, 2020
This book examines four aspects of Malaysian consumers’ financial vulnerabilities. First, it discusses the issue of over-indebtedness due to excessive reliance on consumer financing. Second, the book investigates why Malaysians are ill-prepared for their golden years in terms of retirement planning and savings. Third, it delves into the problem of financial fraud victimisation among Malaysian consumers. Fourth, the book analyses the reasons why Malaysians are underinsured despite the distinct benefits of life insurance.
Drawing on secondary data from government agencies such as Bank Negara Malaysia, Employees Provident Fund, Royal Malaysian Police and the Department of Statistics Malaysia, each chapter presents statistical trends reflecting the four financial vulnerabilities. In-depth analyses of the literature reveal three broad psychological domains (cognition, motivation and disposition) and specific psychological factors (e.g. over-confidence, self-control, social norms and financial literacy) that significantly influence consumers’ financial decisions. The four financial vulnerabilities investigated in this book directly addresses the strategic outcomes of the Malaysian National Strategy for Financial Literacy 2019-2023 (MNSFL), a five-year plan to elevate the financial literacy of Malaysians. Finally, the book presents strategic recommendations that are believed to be useful guidelines for relevant policymakers to promote positive financial behaviours and rational attitudes among consumers.
It will be a useful resource for policymakers and researchers interested in economic psychology and behavioural finance.
Nurul Shahnaz Ahmad Mahdzan is Associate Professor and the current Head of Finance and Banking Department, University of Malaya. She obtained her PhD from University of Nottingham, UK. With ten years’ experience working in financial services, she has published numerous articles on personal financial behaviour.
Mohd Edil Abd Sukor teaches finance and Islamic finance at Faculty of Business and Accountancy, University of Malaya. He holds a PhD in finance from the University of Melbourne, Australia. He has led several research grants including recent one entitled Vulnerabilities in Malaysian Consumer Finances.
Izlin Ismail is Associate Professor and formerly the Head of Department of Finance and Banking. She completed her PhD at Nottingham University Business School, Malaysia Campus. Her research interests include international finance, microfinance and fintech. She also recently completed a financial literacy handbook for primary schools.
Mahfuzur Rahman works at Department of Finance and Banking, University of Malaya. He obtained his PhD from University of Malaya, Malaysia. His research interest includes financial decision-making behaviour and financial risk management. He has managed few research grants and published few research articles.