WITH a global recession and ongoing inflation ahead, Malaysians have much to be concerned about their finances.
A recent financial survey has revealed that 70 percent of their Malaysian respondents have less than RM500 per month in their savings.
RinggitPlus reported that data from a RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2022 stated that 70 percent of their respondents managed to save less than RM 500 every month or do not possess any savings at all which has marked RMFLS’ worst result in five years.
Meanwhile on the higher end of savings, only five percent of Malaysians have managed to save more than RM 1,500 per month in 2022, marking a significant drop from 2020 which recorded a higher amount of 20 percent.
“The financial effects of the pandemic have been devastating and our survey findings this year reaffirm that Malaysians have real financial challenges to address.
“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,” said Hann Liew, Co-Founder and Director of RinggitPlus.
The RMFLS 2022 survey also indicated that 55 percent of Malaysians are essentially living from ‘paycheck-to-paycheck’ while 63 percent of Malaysians responded that they can survive for three months or less with their savings only.
The survey revealed that a whopping 65 percent of respondents above 21 years old have chosen to dip into their Employees’ Provident Fund (EPF) savings if the government allows it, therefore choosing short term monetary relief rather than long term financial stability.