OVERSPENDING and purchasing vehicles that far exceed one’s income capacity are among the main reasons civil servants fall into serious debt, according to the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) Secretary-General Abdul Rahman Mohd Nordin.
He said the problem stems from the tendency of some civil servants to live beyond their means and take out loans for non-essential purposes.
“Some take personal loans or use credit cards for unnecessary spending. Sometimes they already have clothes but continue buying more just to satisfy their desires,” he told Sinar Harian.
“There are also those who buy cars they cannot afford. It would be enough to own a modest vehicle, but they insist on luxury models — that’s when people fail to ‘cut their coat according to their cloth’,” he added.
Earlier, Public Services Department Director-General Tan Sri Wan Ahmad Dahlan Abdul Aziz had called on heads of federal and state government departments to pay attention to officers under their supervision who may be burdened with excessive debt.
He said this was to prevent civil servants from falling into situations where their financial commitments exceeded their repayment capacity.
Abdul Rahman said that a lack of financial literacy and the rising cost of living, especially for those working in urban areas, were also driving factors behind mounting debt.
He warned that such financial strain can impact work performance and mental well-being.
“If a loan is managed properly and repayments are made on time, it’s not wrong. But when repayments are constantly delayed and high interest accumulates, it becomes a burden,” he said.
“When the burden grows, it leads to psychological problems such as stress and emotional disturbance, and can eventually affect integrity. In some cases, it can even cost someone their job,” he added.
Abdul Rahman urged government departments to take a proactive role in identifying employees facing financial stress and to provide appropriate guidance.
He also emphasised the importance of continuous education and awareness programmes on financial management so that civil servants do not become trapped in cycles of debt and economic pressure. - November 8, 2025
