PETALING JAYA (Oct 1): Financial comparison platform RinggitPlus has reported encouraging progress among lower-income Malaysians, with a growing proportion of respondents taking steps towards achieving long-term financial security.<\/p>\n
The findings were presented in the 2025 Malaysian Financial Literacy Survey (RMFLS), the eighth annual study, which explored how over 3,000 Malaysians manage, save, and think about their personal finances.<\/p>\n
RinggitPlus chief executive officer\u00a0Yuen Tuck Siew said a notable 55% of those earning below RM2,000 per month have started planning for retirement in 2025, up from 48% in 2024.\u00a0<\/p>\n
“The uptick reflects the growing impact of financial education initiatives, government support programmes, and the recent minimum wage increase in helping communities most affected by rising living costs,” he told reporters after the RMFLS 2025 results briefing, here on Wednesday.<\/p>\n
Yuen said financial literacy within the lower-income segment is also improving, with around 40% of respondents unfamiliar with credit scores, down from 45% last year, suggesting greater awareness of how credit impacts financial well-being.<\/p>\n
“There are also signs of financial caution, with 36% of lower-income respondents saying they actively avoid using Buy Now, Pay Later (BNPL) services, which is the highest among all income segments.\u00a0<\/p>\n
“This may reflect a shift towards more careful debt management, especially as economic uncertainty has made borrowing riskier for vulnerable groups,” he said.<\/p>\n
However, Yuen said the middle-income group is projecting lower savings in 2025, with only 23% of those earning between RM5,000 and RM10,000 per month having managed to save between RM1,001 and RM1,500 a month, compared to 29% in 2024.\u00a0<\/p>\n
\u00a0“Financial sentiment within the middle-income segment has also softened. Although nearly half of Malaysians (48%) believe their financial situation has improved compared to last year, this optimism was not shared equally. Only 54% of middle-income earners feel they are better off, down from 58% in 2024.<\/p>\n
“These findings suggest that while Malaysia\u2019s middle-income continues to benefit from broad-based support measures such as fuel subsidies, they may be quietly slipping into financial vulnerability, with reduced savings and weaker financial buffers compared to last year,” said Yuen.<\/p>\n
At the same time, the survey showed younger Malaysians are emerging as a bright spot in 2025, with 40% of respondents saving more than RM500 monthly, up from 36% last year, said Yuen.<\/p>\n
He added that the survey also highlighted rising insurance costs in Malaysia, with 22% of policyholders either switching to a cheaper plan or cancelling at least one policy in the past year due to affordability concerns.<\/p>\n
“Despite individual efforts to plan for the future, 43% of Malaysians remain without medical insurance, while 15% rely solely on company-issued medical cards.<\/p>\n
Yuen also lauded Bank Negara Malaysia’s (BNM) requirement for personal loan applicants seeking amounts exceeding RM100,000 to attend financial education module, noting that financial education plays a key role in improving many aspects of life.\u00a0<\/p>\n
“When it comes to managing debt, the challenges are significant, but with stronger financial literacy, people can better navigate these difficulties and reduce risks in the future.<\/p>\n
“I think BNM is a fantastic regulator. We’re always very encouraged by any efforts it makes towards improving the financial life of the nation,” he added.<\/p>\n
On Tuesday (Sept 30), BNM announced that consumers applying for personal financing with amounts exceeding RM100,000 will need to attend and complete a financial education module.<\/p>\n