KOTA BHARU: A study conducted by the Employees Provident Fund (EPF) has revealed that the residents of Kelantan, followed by those of Sabah and Terengganu, have the lowest financial literacy rate in the country.
EPF East Region director Rahmat Ali said the study, conducted in 2022, took into account several factors, including limited exposure to financial management and savings.
The study revealed that the financial literacy rate in Kelantan was just 15%, followed closely by Sabah at 16% and Terengganu (17%), in contrast to Kuala Lumpur with a significantly higher rate of 41%.
"They may have their own savings, but the savings are kept in unproductive places, such as at home or in banks that do not provide high returns.
"If their financial literacy were better, they would know how to choose savings instruments that provide higher returns, such as the EPF," he told reporters after the State Media and Stakeholder Engagement ceremony here on Tuesday (Sept 23).
Rahmat also said that the EPF is now focusing on raising awareness, particularly among the self-employed who do not make formal contributions through employer deductions.
"Among the facilities offered are i-Saraan and i-Suri. Through i-Saraan, the government provides an incentive of RM500 every year for 10 years if contributors save RM2,500 annually.
"These contributions not only enable them to enjoy incentives and dividends, but also provide various other benefits such as withdrawals for housing purchases, education, and protection in cases of disability or death," he added.
To date, EPF has recorded 18,385 i-Saraan contributors, while 431 individuals have registered under i-Suri.
Rahmat urged more people to take advantage of this opportunity as a future investment. – Bernama
