24th September 2025 - 3 min read
A 2022 study by the Employees Provident Fund (EPF) has found that financial literacy rates are lowest in Kelantan, Sabah, and Terengganu. The findings point to a need for greater awareness about effective financial management and savings habits in these states.
According to the EPF’s study, Kelantan has a financial literacy rate of just 15%. This is followed closely by Sabah at 16%, and Terengganu at 17%. To put this into perspective, Kuala Lumpur recorded a significantly higher rate of 41%.
Rahmat Ali, the EPF East Region Director, explained that these figures reflect how people manage their money. He noted that while individuals may be saving, their money is often kept in “unproductive” places. This could mean storing cash at home or in basic bank accounts that do not generate high returns.
With better financial literacy, individuals would be better equipped to choose savings options that can grow their money more effectively over time. This includes understanding the benefits of schemes offered by institutions like the EPF, which are designed to provide higher returns for long-term savings.
To address this gap, the EPF is actively working to increase financial awareness, especially among those who are self-employed. Since they do not have mandatory employer contributions, many self-employed individuals, such as gig workers and small business owners, may be missing out on crucial retirement savings.
The EPF offers voluntary contribution schemes like i-Saraan and i-Suri to help this group save for their future. These programmes are designed to be accessible and provide additional incentives to encourage regular savings. For more details on how to get started, you can explore our complete guide to EPF self-contribution for the self-employed.
The i-Saraan scheme is specifically for self-employed members. Through this programme, the government provides a special incentive of up to RM500 per year. For example, if a member contributes RM2,500 into their EPF account in a year, the government will top it up with an additional RM500.
These contributions not only help build a retirement fund but also allow members to enjoy annual dividends. Furthermore, members can access other EPF benefits, such as making special withdrawals to purchase a house, pay for education, or cover medical expenses. The savings also act as a safety net, providing financial support in the event of death or disability.
To date, the EPF has registered 18,385 i-Saraan contributors and 431 i-Suri contributors in Kelantan. The EPF encourages more individuals to take advantage of these opportunities as a valuable investment for their financial future.
Improving the financial well-being of Malaysians is a mission we take seriously at RinggitPlus. To support this goal, we conduct the annual RinggitPlus Malaysian Financial Literacy Survey (RMFLS). This yearly survey provides a snapshot of the nation’s financial health, helps track important trends, and identifies areas where knowledge can be improved.
By sharing our findings, we aim to start conversations and empower our readers with the insights they need to make smarter financial decisions. Stay tuned as we will be releasing the results of the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2025 soon!
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