| Rokiah Mahmud |

THE public should equip themselves with basic knowledge on financial management to be more effectively and efficiently dealing with their own finances, Minister at the Prime Minister’s Office Dato Seri Setia Haji Awang Abdul Mokti bin Haji Mohd Daud said yesterday.

“Many in our present-day society are compelled to go into debt or take up loans from financial institutions for the purpose of meeting their basic needs, or to have a comfortable life,” he said.

“For instance, it seems to be a trend at present, for people to apply for financial loans to continue their education.”

In this situation, it is important for one to be cautious, and receive guidance on the amount to be borrowed, according to their income,” he said.

The minister was speaking in his capacity as a member of the Autoriti Monetari Brunei Darussalam’s (AMBD) Board of Directors, at the opening ceremony of the 13th Malay Archipelago Syariah Scholars Dialogue (Muzakarah-13) at The Rizqun International Hotel in Gadong.

The minister also stressed, “Taking loans is permitted in Islam, but bear in mind that everyone needs to take precautionary measures so that the amount of the debts incurred will not be a burden to themselves, their guarantors or to their family members.”

He added, “If the debts are not managed properly and wisely, it often leads to constant worry, loss of sanity and reasoning, and even may result in criminal activities. These are among the issues faced by debtors if there is no involvement from authorities in the handling and dealing of matters related to debts.

“A life surrounded by debts can be an issue, and may affect the financial and economic stability of a country,” he reminded.

“Overspending and going into debts that are beyond their abilities and capabilities indicates that there are still many people who are incapable of making prudent financial planning.

“This is due to their lack of understanding or knowledge on the importance of financial literacy; therefore, it is important for one to be familiar with this, which should indirectly encourage them to get into the habit of saving.

“With such discussions and information shared during the dialogue (muzakarah), it is hoped that it will be an effective platform to inculcate and enhance awareness among the general public.”