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.
(i) Social media is the preferred source of financial information for 75% of respondents.
(ii) Confusion about the roles of professional financial planners, with many mistaking them for various financial advisors.
(iii) Robo-advisor usage is low at 9%, possibly due to a perceived lack of empathy and accuracy.
(iv) The necessity of improving financial literacy, especially in retirement planning and cautious use of digital information.
As for recommendations, there is a dire need for:
(i) Extensive financial education initiatives through seminars, workshops, and empowerment via digital platforms e.g. social media, and robo-tech.
(ii) Periodic engagement between the public and authorities to keep track of the latest financial innovations and updates to avoid online scams, investment frauds, and Ponzi schemes.
(iii) Enhancement of financial planners’ competency in providing consistent advisory services and execution.
(iv) Promoting a better understanding of the financial planner’s various services, roles and responsibilities.
Malaysian Financial Planning Council (MFPC) The Malaysian Financial Planning Council (MFPC) was set up in in 2004 with the objective of promoting nationwide development and enhancement of the financial planning profession. We conduct professional programmes leading to the Registered Financial Planner and Shariah Registered Financial Planner designations. Both qualifications are approved by Bank Negara Malaysia (BNM) as a prerequisite to apply for a Financial Adviser’s Licence and a Financial Adviser’s Representative Licence. The qualifications are also approved by Securities Commission Malaysia for the Capital Market Services Licence (CMSL) application in light of the introduction of the Capital Markets and Services Act 2007.Our mission has extended to include raising the financial literacy of all Malaysians by being at the forefront of efforts to provide financial education to Malaysians from all walks of life. We do this by continuously conducting numerous financial education programmes for the public at no cost, reflecting our contribution and commitment to the positive development of Malaysians and ultimately the nation.
SOURCE: Malaysian Financial Planning Council (MFPC)
FOR MORE INFORMATION, PLEASE CONTACT:
Name: Mohd Farhan Bin Azizan
External Relations, Research and Publication
Malaysian Financial Planning Council
Tel: +6 019 277 3521
Email: farhan@mfpc.org.my
Our website: www.mfpc.org.my
--BERNAMA 
