In the “Malaysian Financial Literacy Survey (RMFLS) 2021” survey conducted by RinggitPlus, it was found that the number of Malaysians who say that they are unable to save month every month has increased to 21% compared to 19% from last year.
In the survey, it was said that the credit crunch was due to the Covid-19 pandemic and economic situation.
“21% of Malaysians told us they cannot save a single sen each month, increasing from 19% of respondents last year.”
“People that can save less than RM500 or do not manage to save each month was 56% this year versus 49% last year, and the people that can save RM1,500 or more each month was 15% versus 20% last year.”
“In summary, saving has been more difficult than ever before and we can tie this to the pandemic and the economic situation.” RinggitPlus co-founder and director Hann Liew was quoted saying by Bernama at the virtual RMFLS 2021 event yesterday (13 October).
The RMFLS 2021 survey involved 3,000 respondents across all income groups in Malaysia.
Meanwhile, Liew also said that the survey found a huge percentage drop in people are confident that their Employees Provident Fund (EPF) savings are enough for retirement.
He said that 15% of the respondents this year believed that their EPF savings are enough for retirement compared to 30% last year.
On the other hand, 85% of respondents think their EPF savings alone may not be sufficient for retirement and almost half of them (45%) have not started any retirement planning.
Hann said that this is a worrying metric as the differences are larger than RinggitPlus have expected.
The survey also found that around 52% of respondents cannot survive more than 3 months if they lose their job, while 44% spend exactly or more than what they earn. Nonetheless, 76% of them believed that they are in control of their own money.
“This year, building an emergency fund was the top reason Malaysians saved money.” he said.
He added the pandemic has been a huge wake-up call for Malaysians to drop their poor financial decisions and start practicing the good ones.
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