Learn proper financial management concepts, says Dr Wee

THE people are urged to manage their finances smartly and not to fall into financial scams especially during the Covid-19 pandemic period.

Transport Minister Datuk Seri Dr Wee Ka Siong said that during the pandemic, criminals had easily induced victims to fall into traps, causing many people to lose money.

“These deceptions include get-rich-quick schemes plus gold and illegal foreign exchange investment plans, ” he said in his opening speech for the ‘My Money and Me’ online financial education seminar.

“In order to avoid falling for investment scams, it is very important to cultivate correct financial management concepts.

“This will help educate us on how to manage cash flow and invest smartly at the same time.

“Smart financial management can help us better allocate our finances, ” he added.

The online seminar was hosted by the Malaysian Financial Planning Council Penang chapter.

It drew 680 participants who learned correct financial management to avoid becoming victims of fraud.

Dr Wee said that through legal and formal financial management tools and investment products in the market, financial autonomy could be achieved as soon as possible.

“This will improve our families’ lives.

“According to data released by the Credit Counselling and Debt Management Agency in August 2019, poor financial planning and delay in paying debts are the main reasons leading to a financial crisis.

“However, many studies show that most young people face great financial pressure due to uncontrolled consumption, ” he said.

As of 2016, young people accounted for 13.9 million or 45.8{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of the country’s total population.

“Therefore, it is necessary to organise more financial management workshops for youths,’’ said Dr Wee.

Meanwhile, Malaysian Financial Planning Commission Penang chapter chairman Dr Tan Chuan Hong pointed out that the two most common questions received currently involved insurance and Covid-19.

“Many people were curious if medical insurance covers Covid-19 testing expenses and whether they are able to claim if they are diagnosed with Covid-19 and have to receive treatment in a private hospital.

“It is not possible to claim medical insurance for testing expenses.

“Although Life Insurance Association of Malaysia, General Insurance Association of Malaysia and Malaysian Islamic Insurance Association invested a total of RM10mil into the Covid-19 Testing Fund, the funds have been used up.

“It is also not possible to claim for medical treatment for Covid-19 in a private hospital since most medical insurance schemes currently have ‘pandemic exclusion’ clauses.

“As such, various insurance companies have now set aside ‘special funds’ during the outbreak for their insured customers to claim compensation, ” said Dr Tan.