Household financial fragility in Malaysia is influenced by factors like high household debt and inadequate financial management. Quick increases in household credit can lead to banking crises, and bankruptcies are often linked to high household indebtedness. The ability of households to recover from unexpected financial shocks, like job loss or increased expenses, is crucial. In Malaysia, rising household debt raises concerns about financial sustainability during economic downturns. Low-income households are particularly vulnerable, but research on their specific challenges is lacking. The availability of household data in developing countries like Malaysia is limited, hindering comprehensive research on financial fragility.