For the eighth year running, the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2025 asks: How are Malaysians really managing their money? We surveyed thousands of individuals nationwide to get a true picture of financial health.
This year’s survey shows progress for the lowest earners, but mounting pressure on the middle class. From retirement confidence to rising insurance costs, the survey highlights both resilience and vulnerabilities.
Key Summary Findings
Here are the most important takeaways from RMFLS 2025 at a glance:
- Middle-income squeeze: RM5,000 to RM10,000 earners are feeling the pinch. Only 23% save RM1,001 to RM1,500 per month (29% in 2024) while 39% save RM500 or less (31% in 2024). On top of that, just 27% could survive more than six months on savings (32% in 2024).
- Low-income progress: Individuals earning below RM2,000 show gains in planning and awareness. 55% have started retirement planning (48% in 2024) and only 40% of this group say they are unaware of credit scores (45% in 2024).
- Insurance trade-offs: Most policyholders kept cover, but affordability bites. 64% kept their plan while 22% switched to cheaper plans, reduced coverage, or cancelled one or more policies because of higher premiums.
- Digital finance and AI adoption: Social media is a primary learning channel for finance, used by 68% of Malaysians with a trust score of 4.3 (4.0 in 2024). Gen Z leads in AI adoption, with 62% using AI financial tools for budgeting, investing, or advice.
Want to see how your finances compare to the national findings? Try the RinggitPlus Money Meter. It’s a quick quiz that gives you a simple financial score and tailored tips on saving, budgeting, and protection.
In-Depth Analysis
We surveyed 3,113 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.
Middle-Income Earners Are Showing Signs of Strain
Those earning RM5,000 to RM10,000 are saving less and have thinner emergency buffers. The share saving RM1,001 to RM1,500 fell to 23% (29% in 2024; 27% in 2023; 33% in 2022), while those saving RM500 or less rose to 39% (31% in 2024; 35% in 2023; 32% in 2022). The proportion who say they could survive more than six months on savings fell to 27% (32% in 2024; 28% in 2023 and 2022).
| Year | Save RM1,001 to RM1,500 | Save below RM500 |
| 2022 | 33% | 32% |
| 2023 | 27% | 35% |
| 2024 | 29% | 31% |
| 2025 | 23% | 39% |
| Year | Can get by more than 6 months on savings |
| 2022 | 28% |
| 2023 | 28% |
| 2024 | 32% |
| 2025 | 27% |
Day-to-day strain is clear: 47% report living paycheck to paycheck (45% in 2024) and only 37% say they are happy or satisfied with their finances (41% in 2024). We do not see the same downward movement across other income bands. To cope, many in this band are cutting discretionary spending and seeking extra income: 60% are spending less on leisure (57% in 2024), 59% are eating out less (54% in 2024), 43% reviewed and cut subscriptions (40% in 2024), and 41% have started exploring freelance or side income due to global economic uncertainties.
Low-Income Malaysians Show Measurable Gains
Among those earning below RM2,000, 55% have started planning for retirement, up from 48% in 2024. Credit score awareness has improved as well, with only 40% in this group saying they are unaware of credit scores, down from 45% in 2024. Progress is not uniform though, because affordability pressures persist: about 26% have switched to cheaper insurance plans, reduced coverage, or cancelled policies due to higher costs. These changes point to meaningful, if partial, improvements in financial knowledge and preparedness.
Insurance and Takaful Under Pressure
Most Malaysians have kept their insurance or Takaful coverage despite rising premiums, with 64% reporting they maintained their plans. At the same time, 22% switched to cheaper plans, reduced coverage, or cancelled one or more policies because of higher costs.
| Survey Question | Options | Percentage of Respondents |
| In the past 12 months, have higher insurance or Takaful costs made you change your coverage? Sample size = 1048 | I kept my existing plan even though costs increased — I can manage it | 64% |
| I switched to a cheaper plan or reduced my coverage | 18% | |
| I cancelled one or more plans due to higher costs | 4% | |
| I wanted coverage but couldn’t afford it | 3% | |
| I didn’t notice any change in cost | 12% |
Affordability remains the primary barrier and this trend raises concerns about potential underinsurance.
Retirement Confidence on the Rise
This year, 22% of Malaysians say their EPF savings will be enough for retirement, compared to 19% in 2024. While still low, the improvement cuts across income and age groups, pointing to greater awareness and possibly the impact of ongoing financial literacy efforts.
Digital Finance and Social Media’s Expanding Role
Younger Malaysians are embracing AI-powered budgeting tools, robo-advisors, and BNPL at the highest rates. At the same time, social media continues to gain trust as a financial learning channel, with 68% of Malaysians turning to it for advice and a rising trust score of 4.3 (4.0 in 2024).
Investment Patterns Across Generations
The top five investments overall remain: ASNB (64%), unit trusts (42%), precious metals (38%), local stocks (24%), and cryptocurrency (22%).
Gen Z: Simple products like ASNB and precious metals dominate, but they also lead in crypto and robo-advisor use.
Millennials: More diversified, combining ASNB and unit trusts with local equities and crypto.
Gen X: Traditional, with real estate uniquely in their top five.
By gender: Women lean toward ASNB and precious metals, while men are more likely to hold equities, crypto, and use robo-advisors.
Download the RMFLS 2025 Report
For a deeper understanding of the findings, methodology, and expert analysis, download the full RMFLS 2025 Report (PDF).
Final Thoughts and Past Reports
The 2025 Malaysian Financial Literacy Survey shows a nation at a crossroads. Low-income Malaysians are making encouraging gains, while middle-income households face intensifying challenges. Insurance affordability and retirement readiness remain critical areas to address.
Progress is clear, but so are the gaps. Continued collaboration between government, industry, and educators is key to ensuring Malaysians at every level can thrive financially.
Curious how the journey has evolved? Explore past reports to see how Malaysians’ financial habits have shifted over time:
- Read the RMFLS 2024 Report
- Read the RMFLS 2023 Report
- Read the RMFLS 2022 Report
- Read the RMFLS 2021 Report
- Read the RMFLS 2020 Report
2025 Official Partners
- KAF Digital Bank (Digital Banking Partner)
- CIMB Foundation (CSR Partner)
- Experian (Credit Health Partner)