Determinants of Financial Vulnerability Among Civil Servants in Peninsular Malaysia

Lee May Poh, Husniyah Abdul Rahim, Rusitha Wijekoon
Department of Resource Management & Consumer Studies, Faculty of Human Ecology, Universiti Putra Malaysia

Mohamad Fazli Sabri
Institute for Social Science Studies, Universiti Putra Malaysia


The effect of the global financial crisis, rising debt, and bankruptcy on civil servants in Malaysia are perturbing. Civil servants need to overcome various money-related challenges (unexpected job loss, higher interest rates than expected, and high debt-to-service ratio) in today’s challenging financial condition, and monetary oversight made in life can have terrible consequences. This study discusses the determinants of financial vulnerability among civil servants in Peninsular Malaysia. The conceptual framework was developed based on the Family Resource Management Model and Life Cycle Theory. Primary data were collected using a questionnaire, and a total of 590 respondents were selected through multistage random sampling. According to Pearson’s correlation coefficient analysis, determinants like financial attitude and self-efficacy, except financial literacy, positively correlated with financial vulnerability. Financial management practices were the most significant predictor as indicated by multivariate analysis. Moreover, mediation analysis found that financial management practices significantly mediated the relationships between variables and financial vulnerability.

Keywords: Financial vulnerability, Financial literacy, Financial attitude, Selfefficacy, Financial management practices