PETALING JAYA: Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar recently advised civil servants to spend within their means after many civil servants were recently revealed to be bankrupt.
Shamsul Azri claimed the need to flaunt one’s social status is among the reasons many public servants at all levels are withdrawing excessive loans, which in turn drive them to bankruptcy.
“There are public servants who were gifted with the skill to manage millions of ringgit in government funds but they cannot afford to manage their own money to the point they are forced to take out a loan.
“We are supposed to live within our means, if we can only afford a Xiaomi phone, don’t try to use an iPhone,” he was quoted as saying by Berita Harian.
The statement also follows the Malaysian Anti-Corruption Commission (MACC) busting a financial consulting syndicate in its Op Sky probe, which uncovered civil servants taking outstanding bank loans, resulting in large debts.
ALSO READ: Civil servants urged to improve financial literacy
“There are civil servants who like to be extravagant in their appearance. For example, if they can afford a Perodua Myvi, they should not try to drive a Toyota Vios,“ Shamsul Azri was also quoted as saying.
He also said the Public Officers Regulations (Conduct and Discipline) stipulate that loan deductions need to be at least 40% of the monthly emoluments except for performing hajj and purchasing a house, hence if the regulation is followed, the risk of bankruptcy can be curbed.
“Instructions have been issued to the head of department, they need to send the government staff facing financial difficulties for counselling services with the Credit Counseling and Debt Management Agency (AKPK),” he was quoted as saying.
On Saturday (March 8), Insolvency Department of Malaysia (MDI) director-general Datuk M Bakri Abd Majid stated the younger generation’s lifestyle revolving around showing off is one of the causes of financial troubles, leading to bankruptcy.
Bakri also proposed that the young workforce, specifically fresh graduates who just stepped into the working world, be barred from holding a credit card as it is said to be one of the main causes of serious financial troubles.
