20 October 2020

A SURVEY conducted by financial education platform, Multiply reveals that almost 70 per cent of Malaysians are in need of financial literacy support.

In a statement today, the platform said the survey also revealed that only 31 per cent of the respondents were considered as “Money Boss” − someone who understands basic financial concepts well.

“This year has turned out to be an extraordinarily challenging year in terms of personal finance. It is not surprising that many Malaysians are concerned about their financial position.

“However, it is not all doom and gloom. A healthy 53 per cent of respondents plan their budgets in advance, 31 per cent have basic insurance in the event of a vehicle accident, and 52 per cent have some form of savings for rainy days,” it said.

The survey attracted 3,333 responses, of which 21 per cent were “Finance Newbies” − those who did not know the basics of personal finance, while another 48 per cent were ranked as “Finance Cadets” − those who had just started to grasp the basics of personal finance.

It said budgeting and savings were cited as areas where they needed most help, with 41 per cent of the respondents finding it difficult to manage their monthly salaries and constantly worried about having enough to sustain themselves until their next paycheck.

While six per cent relied on credit cards to make up their monthly shortfalls, 48 per cent of the respondents said they have no emergency savings.

The survey also highlighted that 32 per cent of the respondents preferred to leave their available funds in a simple savings account, rather than explore higher returns through investments.

Multiply, which can be accessed at multiply.org.my, was established by private equity firm Creador to address financial literacy gaps.

Since it went live in June, Multiply has partnered with other non-profit organisations and financial industry players to fast-track community and social outreach programmes to the B40 and M40 groups.

Source: https://themalaysianreserve.com/2020/10/19/70-of-malaysians-need-financial-literacy-support-survey/