IN A nutshell, financial literacy is low in Malaysia and many are in denial of their financial reality, based on the RinggitPlus Malaysian Financial Literacy survey 2019 (RMFLS 2019) conducted by RinggitPlus.
The survey found that while close to 70% of Malaysians said they were in control of their finances, an astounding 53% of respondents indicated that they were not able to survive more than three months with their savings.
The findings also revealed that about 43% spent exactly what they earned or more, a 10% increase from last year.
While an alarming 89.2% of those who responded claimed that Employees Provident Fund (EPF) was not enough for retirement, more than one third of them did not have a retirement plan.
Back for the second consecutive year, the survey was held in partnership with Visa International and made available on RinggitPlus.com and Says.com.
This year the data was based on a representative of 1,101 respondents sampled from 8,139 participants between the age of 20 and 60 through stratified sampling.
RinggitPlus chief executive officer Liew Ooi Hann said the annual survey played a critical role in providing insights to drive the financial comparison website’s mission for the nation – saving Malaysia one wallet at a time.
“It is time for Malaysians to take action and we hope this year’s result acts as a wake-up call.
“The lack of awareness on personal finance is an ongoing challenge for all of us and what is alarming is that people are in denial of their financial status.
“While knowing the importance of financial management, people do not take active measures, ” he added.
He shared that among some of the findings, more than 30% of those responded claimed that they were in control of their finances and yet spent exactly or more than what they earned.
Other than that, over half of the respondents aged between 20 and 29 indicated that they did not have a retirement plan.
“With these findings, we are switching gears to place greater importance on our battle to proliferate the nation’s financial literacy, which is in line with the National Strategy for Financial Literacy 2019-2023 to highlight the urgent need to address financial illiteracy in the country.
“While we are continuously coming up with new innovations, we are also doing more collaborations to increase financial
literacy, such as the recent partnership with Mah Sing Group Bhd to facilitate home loan applications.
“We believe that the nation gets better when every Malaysian becomes financially literate, ” said Liew.
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