Financial Literacy Of Malaysians Has Improved But Still Facing 3 Challenges

KUCHING, Nov 17 (Bernama) -- 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) Deputy Governor Adnan Zaylani Mohamad Zahid 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.

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"This is an encouraging development. However, we remain mindful of other factors influencing financial behaviour, which also present challenges," he said in his speech at the Closing Ceremony of the Sarawak Financial Literacy Carnival and Financial Literacy Month 2024 here, today.

Adnan Zaylani said a 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.

He pointed out that poor financial management 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.

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"According to the same survey, 61 per cent of Malaysians would have difficulty to come up with RM1,000 in case of an emergency," he said.

He also noted that the 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.

"As a result, great emphasis has been placed on raising awareness and providing information and support services regarding these three issues throughout this carnival," he added.

Through this three-day carnival, he hoped that visitors would take advantage of the knowledge available to build a stronger and more stable financial future for themselves, their families, and their communities.

The Sarawak Financial Literacy Carnival is the culmination of programmes organised by the Financial Literacy Squad involving financial institutions and agencies, in conjunction with Financial Literacy Month, which has been held throughout October and November at 90 locations nationwide.

-- BERNAMA