RMFLS 2024 Reveals Malaysians’ Adaptability in Financial Strategies

Malaysian financial health is improving, but key challenges remain.

For the seventh year running, our annual RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2024 asks an important question: How are Malaysians really doing with their money? We surveyed people nationwide to get a good sense of their financial health.

Based on the survey, we’re seeing a positive trend where Malaysians are turning a corner in their financial situations, for the first time since the COVID-19 pandemic. From improved savings to better financial resilience, the insights that we have for 2024 signal recovery.

Key Summary Findings

Here are the most important takeaways from the RMFLS 2024 at a glance:

In-depth Analysis

We surveyed 3,385 Malaysians aged 18 and above across all states and federal territories. The online survey was conducted in English, Bahasa Malaysia, and Chinese to ensure diverse representation and comprehensive insights.

A Closer Look at Savings and Spending Post-Pandemic

While our data signals recovery, Malaysians continue to face huge financial pressures. About 53% of respondents admit they spend their entire income or more each month, and 20% are unable to save any amount. This financial strain contributes to persistent anxiety, even though 47% feel their financial situation has improved since 2023.

Here’s a brief look at the percentages of respondents who managed to save more than RM500 per month over the years.

Survey Year Percentage of Respondents
2019 44%
2020 51%
2021 48%
2022 30%
2023 29%
2024 33%

To cope, Malaysians are taking steps to cut back on their expenses. The top three actions taken this year were:

Interestingly, this financial strain isn't just felt by lower-income groups. More high-income earners (earning over RM10,000 monthly) are living paycheck to paycheck this year compared to last (48% vs 40%).

The Shift to Digital Finance

Malaysians are all about digital finance these days, with cash transactions no longer being the preferred way to pay. Contactless card payments are everywhere, and QR payments are right behind them. This shift to a digital-first lifestyle is clear with how many e-wallets people have, with 95% of us using at least one app.

Despite digital progress, there's still a big gap when it comes to financial literacy. A surprising 53% of Malaysians either don't know what a credit score is or don't get how it can help them. This lack of awareness can reduce their chances of getting loans for big purchases, like houses or cars. It highlights how much we need better financial education.

While the "Jangan Kena Scam" campaign has helped 56% of people avoid potential fraud, the need for education on what to do after an incident remains important.

Survey Question Responds Percentage of Respondents
Do you find the "Jangan Kena Scam" national anti-scam awareness campaign has helped you avoid being a potential
scam/ fraud victims? 		Yes 56%
No 8%
Not sure 19%
I have not heard of this campaign 17%

A Cautious Approach to Retirement and Investments

When it comes to planning for the future, it's a mixed bag. More people are thinking about retirement this year (60% compared to 54% in 2023), which is great! But, a big chunk of those who haven't started yet (45%) say they just don't know where to begin. This is worrying, especially since only 19% believe their EPF savings will be enough for retirement.

Despite that, it's still great to see that Malaysians are being smart with their money in the new EPF Flexible Account. Over half (56%) decided to keep their funds in there. For those who did withdraw, the main reasons were to cope with the rising cost of living (34%) and to repay existing debts (28%), rather than for fun stuff.

In the investment space, there's still hesitation because over half of Malaysian adults (51%) have not started investing. Those who have invested tend to prefer less volatile options, with the most popular products being:

Here’s a brief look at other investment product options that are popular among our RMFLS 2024 respondents as well.

Navigating Insurance and Takaful

A significant portion of Malaysians remain financially vulnerable to unexpected life events. The survey found that 42% of respondents are not covered by any medical insurance, with another 14% relying solely on a company-issued medical card. Similarly, 41% do not have a life insurance policy or Takaful contract.

Survey Question Responds Percentage of Respondents
Do you have a medical card? Yes, it’s part of my medical plan. 31%
Yes, it’s issued by the company. 14%
Yes, I have both a personal and a company-issued medical card. 13%
No 42%
Survey Question Responds Percentage of Respondents
Do you have a life insurance policy/Takaful contract? Yes 48%
No 41%
I don't know/ I am not sure 12%

What's holding them back? The number one reason cited is affordability, with 24% stating that insurance/Takaful plans are too expensive. The second most common reason, cited by 19% of respondents, is the belief that they already have sufficient coverage.

Download The RMFLS 2024 Report

For an in-depth understanding of the findings, methodology, and expert analysis, download the full RMFLS 2024 Report (PDF).

Final Thoughts and Past Reports

The 2024 Malaysian Financial Literacy Survey (RMFLS) shows that Malaysians are bouncing back and doing pretty well with their finances. While there are still some hurdles with digital security and getting ready for retirement, people are making positive changes to their financial habits, which looks great for what's ahead.

Curious to see how things have changed? Explore our previous reports to see the trends over the years.

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