Bank Negara Malaysia has released a discussion paper outlining the Second National Strategy for Financial Literacy (NS2.0), aimed at strengthening financial literacy and resilience among Malaysians. 

Building on the first National Strategy for Financial Literacy (NS1.0), which was introduced in 2019, NS2.0 seeks to address ongoing financial challenges, improve financial decision-making, and equip individuals with the knowledge and tools necessary for long-term financial well-being. The strategy focuses on five key priorities, each designed to strengthen financial preparedness, responsibility, and security in an evolving economic and digital landscape.

The first priority, promoting wise financial planning and preparation for retirement, focuses on encouraging individuals to manage their finances effectively from an early stage. The discussion paper highlights the importance of proactive financial planning, including budgeting, savings, and early retirement preparation. Proposed measures include expanding public education on retirement planning, increasing awareness of long-term financial commitments, and exploring incentives such as tax benefits or employer-matching contributions to encourage sustained savings habits. The strategy aims to ensure that Malaysians are better prepared for financial stability in their later years.

The second priority, fostering smart and responsible debt management, seeks to equip individuals with the knowledge needed to manage loans, credit, and overall debt obligations responsibly. The paper highlights the need for stronger financial education on borrowing practices, interest rates, and repayment strategies to prevent over-indebtedness. Initiatives may include public awareness campaigns on responsible credit use, tools to help individuals assess their debt capacity, and guidance on how to navigate financial commitments without falling into financial distress. The strategy also considers the role of financial institutions in providing transparent and responsible lending practices.

Securing a financial future with risk protection is another core focus of NS2.0. This priority emphasises the importance of financial resilience through adequate insurance coverage and other forms of financial protection. The discussion paper highlights the need for increased awareness of financial safety nets, including health, life, and asset protection insurance, as well as emergency funds. Proposed measures include improving public understanding of insurance policies, addressing misconceptions about coverage, and ensuring that individuals make informed decisions when selecting financial protection products. Strengthening financial resilience through proper risk management is seen as essential in mitigating unexpected financial shocks.

As digital financial services continue to expand, NS2.0 also focuses on ensuring that individuals can use these platforms securely, effectively, and with confidence. The increasing reliance on digital transactions, online banking, and electronic payments presents both opportunities and risks. The strategy highlights the need for better consumer understanding of digital financial tools, fraud prevention, and cybersecurity. It proposes strengthening public education on how to use digital financial services securely, identifying and avoiding online financial scams, and ensuring that consumers can navigate digital platforms with confidence. Encouraging responsible digital financial behaviour is expected to support safer financial transactions and protect individuals from fraud-related losses.

The final priority, encouraging investments for wealth creation, seeks to improve financial literacy on investment opportunities and strategies. The discussion paper outlines the importance of making informed investment decisions, assessing risks, and ensuring sustainable wealth accumulation. Public education efforts will focus on increasing awareness of different investment options, the risks and rewards associated with various financial products, and the importance of long-term financial growth. The strategy also encourages responsible investment practices by equipping individuals with the tools needed to navigate the investment landscape confidently.

Bank Negara Malaysia’s discussion paper presents a structured approach to improving financial literacy at the national level, with a focus on education, accessibility, long-term financial planning, targeted support for vulnerable groups, and consumer protection. The proposed measures will involve coordination between government bodies, financial institutions, and civil society organisations. The paper is currently open for public feedback, allowing stakeholders to contribute insights before finalising the strategy’s implementation framework.

(Source: Bank Negara Malaysia)

• TAGS:
• Bank Negara Malaysia
• BNM
• Debt
• Digital Financial Services
• Financial Future
• Financial Literacy
• Financial Planning
• NS2.0
• Second National Strategy for Financial Literacy