Exploring financial capability and rent arrears among PPR residents in Kuala Lumpur: A capability approach

Aliffy Khairul Fizam Abdul Adzis, Mohd Suhaimi Mohamad, Surendran Rajaratnam

Abstract


The inability of residents to pay monthly rent for the Public Housing Programme (PPR) is a persistent social housing issue often associated with limited financial capability. Limited financial knowledge may weaken spending skills, debt prioritisation and long-term financial planning, thereby increasing the risk of rent arrears among low-income households. This study aims to explore the financial capability among PPR residents in Kuala Lumpur. Guided by the Capability Approach, the study conceptualises financial capability not only as knowledge but as the real opportunities’ individuals have to make meaningful financial decisions within structural constraints. A qualitative case study design was conducted. Three PPR in Kuala Lumpur were selected using purposive sampling specifically PPR Kampung Muhibbah, PPR Seri Pahang and PPR Seri Pantai. All data were collected using a semi-structured interview guideline with informed consent from all informants. A total of 15 residents were purposively selected based on predefined inclusion and exclusion criteria. Data were analysed through thematic analysis supported by NVivo 15 software for systematic coding, categorising and theme development. The findings reveal four main themes of financial capability such as knowledge of spending, knowledge of financial protection, knowledge of debt management and financial attitudes and behaviour. By applying the Capability Approach, this study extends financial capability discussions beyond individual knowledge to include socio-economic constraints affecting financial well-being. The findings offer policy-relevant insights for improving PPR management sustainably and strengthening social worker interventions within urban low-income communities.

 

Keywords: Capability approach theory, financial capability, Public Housing Programme (PPR), rent arrears


Keywords


Capability approach theory, financial capability, Public Housing Programme (PPR), rent arrears

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References


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