REPORT ON NATIONAL FINDINGS 2024 - FINANCIAL CAPABILITY & UTILIZATION OF FINANCIAL ADVISORY SERVICES IN MALAYSIA
KUALA LUMPUR, Sept 27 (Bernama) -- Malaysian Financial Planning Council (MFPC) has released a Report on National Findings 2024 - Financial Capability & Utilization of Financial Advisory Services in Malaysia. The report is the third instalment of a continuous study funded by the Capital Market Development Fund (CMDF), which focuses on three objectives:
i. to investigate the general financial capability of Malaysians;
ii. to determine Malaysians’ literacy of Capital Market; and
iii. to understand Malaysians’ preferences with regard to financial advisory services.
The previous reports were published in 2018 and 2020, respectively. The digital copies of all these reports are available on MFPC’s website for public consumption, or you may click the following link - https://www.mfpc.org.my/cmdf-research-findings/ .
The research team was led by Prof Dr Mohamad Fazli Sabri, Dean of Faculty of Human Ecology, Universiti Putra Malaysia, in collaboration with local academicians and industry practitioners, including the MFPC Secretariat. Data for the study was collected from June to September 2023 and consisted of 2000 samples, of which 500 were repeat respondents. There were four categories of respondents:
i. public sector employees;
ii. SME/private sector employees/general public;
iii. FELDA/rural area residents; and
iv. youths in institutions of higher learning.
There were four sections on the findings:
(i) demographic and socioeconomic information,
(ii) Financial Literacy,
(iii) Financial Capability and
(iv) Financial Planning Services.
The report findings were then used to aid policymakers in understanding the current scenario in Malaysia and to continuously and progressively study the trend and pattern of the above objectives, to be able to facilitate the design and implementation of relevant policies and market needs.
Some of the findings’ highlights were:
(i) Fewer people understand the importance of the Employee Provident Fund (EPF) for retirement, with only 32% considering it sufficient, down from 58% in 2019.
(ii) Comprehension of the Private Retirement Scheme (PRS) has declined by 16%, indicating a need for better retirement planning education.
(iii) Respondents showed gaps in capital market literacy, particularly regarding the time value of money and inflation.
(iv) Over 70% can manage daily expenses and save for emergencies; 44% prioritise current living over future planning.
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