Sulaiman Akhmady Mohd Saheh, a research director at Rahim & Co, said while those in the B40 income group find it hard to secure housing in cities due to the high cost of living and low wages, poor financial literacy also contributes to their difficulty in saving up for deposits.

Financial literacy is the ability to understand and apply financial management skills such as budgeting, calculating interest and managing debt.

Khazanah Research Institute’s (KRI) State of Households 2018 report described the B40 group as households with gross monthly incomes of less than RM4,360 – although equivalent state-level thresholds vary significantly across the country.

Speaking at a forum organised by social engagement centre O2, themed “Urban poverty: The conflict of owning real estate” yesterday, Sulaiman said: “Many youths want to buy a house but find it hard to secure financing, either because they can’t get a bank loan or their income isn’t enough.

“Sometimes, they can get a bank loan with the income they have, but it’s just that they have other commitments or they spend frivolously.

“Those with many credit cards, even though you don’t use them, banks consider you a high risk (borrower) because you have a sizable credit line.

“That is why financial literacy and management of your credit exposure are important.”

He advised youths to start saving as early as possible and pointed towards insurance premiums – which increase as the buyers grow older – as a key example of the importance of financial awareness, literacy and discipline at a young age.

His views were shared by the other speakers at the forum, including former finance minister II Johari Abdul Ghani.

Johari said while financial literacy and financial management were key to overcoming poverty, peer pressure and social norms – such as buying the latest smartphones – made it harder for many Malaysian youths to stay fiscally responsible and save for their future.