'If you think you are in the category below, act quickly.'
The moment to leave the year 2022 is getting closer but Malaysians seem not yet ready to face the economic crisis that is expected to happen next year.
The basis is clearly visible from the results of the RinggitPlus Malaysia 2022 survey, which examines the financial literacy rate of citizens, finding that the majority of Malaysians are facing severe financial hardship.
It is a string of cash flow issues and running out of reserves due to the Covid-19 pandemic and high inflation rates.
7 out of 10 samples from 3,144 respondents were found to save less than RM500 per month or not save at all while only 5% had savings of more than RM1,500 per month this year.
In comparison it is down 15% from 2021 and down 20% from 2020.
Other data reviewed are summarized below.
71% of respondents believe they manage to control the flow of money in and out while 43% spend more than their total income.
82% of respondents agree that savings in the Employees' Provident Fund (EPF) are not enough to plan for retirement with,
41% have no retirement savings plan.
66% plan to withdraw EPF savings if allowed.
52% of respondents over the age of 18 did not start any investment either in unit trusts, shares or crypto with,
52% choose low-risk investments and preserve capital.
50% choose medium-term investments (5 to 10 years).
59% of respondents do not know or do not care about their credit score and another 32% do not know the advantages of having a good credit score.
55% of credit card holders only pay the loan in full every month, 18% pay the minimum and 27% pay with what they can afford.
