61% Malaysian Have Difficulty To Raise RM1,000 For Emergency

The financial knowledge of Malaysians has significantly improved since 2016 and is approaching the level of developed countries, however, there are still three challenges hindering further progress towards becoming a financially literate society.

Bank Negara Malaysia (BNM) said this improvement in the knowledge level is reflected in the financial survey results of the Organisation for Economic Co-operation and Development (OECD) last year. Based on the OECD study for 2023, the financial literacy level of Malaysians has risen significantly, surpassing the global average and approaching the level of other developed countries.

Financial Capability and Inclusion Survey conducted by BNM recently identified three key financial challenges still faced by Malaysians: poor financial management, saving habits, and digital financial literacy.

61% Difficult To Come Up With RM1,000 For Emergency - remains a concerning issue, with the survey revealing that one in four Malaysians feels their debt is burdensome, while wide access to financial services such as having a deposit account does not translate into meaningful saving habits and usage. According to the same survey, 61 per cent of Malaysians would have difficulty to come up with RM1,000 in case of an emergency.

Low level of digital financial literacy was highlighted by the survey, with 15 per cent of the population, mostly teenagers, sharing their banking passwords. This practice exposes them to the increasing rate of online scams and being used as money mules.