KUALA LUMPUR: The Federation of Malaysian Consumer Associations today proposed the setting up of a financial education commission to help reduce household debts, estimated to total about RM560 billion last year.

Fomca said in a statement that the commission could educate consumers on financial products and services and show them how to access further information to enable them to make better choices.

It cited studies that showed that 50 per cent of credit card holders declared bankrupt were below 50.
According to data from the Credit Counselling and Debt Management Agency, 22 per cent could not pay their debt due to poor financial management.

"In conjunction with World Consumer Rights Day today, Fomca suggests that a commission be formed under the Finance Ministry which will be responsible for stepping up financial management education among consumers," the statement said.

Without basic financial knowledge, Fomca said, consumers will end up buying financial products and services they may not need.

According to Fomca, the commission should focus on raising public awareness of existing sources, fostering cooperation between the public and private sectors, and studying and evaluating financial education programmes.