Tuesday, January 31, 2023

Survey found that 70% of Malaysians save less than RM500 a month, and 55% live by their paycheck

NewsSurvey found that 70% of Malaysians save less than RM500 a month,...

Malaysians have been facing several financial hardships ever since the Covid-19 pandemic broke out in the country, and the situation has not recovered as of yet.

Recently, a survey conducted by RinggitPlus found that Malaysians’ finances are ‘on the brink of disaster’ as a majority of us are facing depleting savings, cashflow issues, and other worrying trends.

The data obtained from ‘RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2022’ showed that up to 70% of Malaysians save less than RM500 a month, while 63% can only survive for up to 3 months with their savings.

“This is the worst-ever result tracked by the RMFLS in 5 years,” the report reads.

Meanwhile, it was found that 5% of Malaysians managed to save more than RM1,500 a month, but this is a significant 15% drop from 2021 and 20% from 2020.

The survey also found that 55% of Malaysians have been spending as much as they earn, as compared to 44% in 2021. This category is living from paycheck to paycheck.

With the depleting savings and higher cost of living, there had been a worrying trend where more credit cardholders could not pay their bills in full — just 55% in 2022 compared to 70% last year.

Up to 66% of the respondents above 21 also said that they will consider applying for more Employees’ Provident Fund (EPF) withdrawals if the government allows it.

Source: The Rakyat Post

This is a wake up call

Co-Founder and Director of RinggitPlus, Hann Liew said that the financial effects of the pandemic have been devastating and their survey reaffirmed that Malaysians are facing a dire financial situation.

“It is a harsh reality not only for the rakyat, but also for policymakers and industry players — this is a generational issue that requires long-term solutions with sustained and concerted support from all parties. We cannot leave anyone behind,” Hann said.

Despite all the negative news, 71% of the respondents believed that they are in control of their cashflows and 43% within the 71% are spending exactly or more than their monthly income.

Meanwhile, 82% believe that their EPF savings are not enough for retirement, and even more concerning, 41% of Malaysians have yet to start financially planning for retirement.

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