PETALING JAYA, Oct 1 — Lower-income Malaysians are showing greater financial literacy, with more than half of those earning below RM2,000 monthly now planning for retirement, up from 48 per cent last year, a recent study by financial comparison platform RinggitPlus found.
According to the Malaysian Financial Literacy Survey 2025, conducted on 3,113 Malaysians, the group’s credit score awareness has also improved, with only 40 per cent of them reporting unfamiliarity with the concept, down from 45 per cent.
RinggitPlus chief executive officer Yuen Tuck Siew said the survey revealed encouraging signs among lower-income groups in their understanding of debt and debt management practices.
"Looking at the results, especially for the lower-income segment, there's a strong understanding of the risks of buy now, pay later (BNPL). About 36 per cent actually avoided using it altogether," he said at the survey launch here today.
Bank Negara Malaysia (BNM) previously disclosed that BNPL debt of RM2.8 billion remained a small proportion of overall household debt, representing just 0.2 per cent as of December 2024.
However, the central bank's Financial Stability Review for the second half of 2024 noted that total BNPL purchases increased substantially, reaching 83.8 million transactions worth RM7.1 billion during that period.
The survey also found that Gen Z Malaysians are emerging as a bright spot in the nation's financial landscape, increasingly turning to AI-powered tools and digital platforms to manage their money responsibly.
It revealed that 62 per cent of Gen Z respondents now use artificial intelligence for budgeting, investing, or seeking financial advice.
When it comes to investment preferences, Malaysians continue to favour Amanah Saham Nasional Bhd (ASNB) funds, with 64 per cent holding such investments, followed by unit trusts (42 per cent), precious metals (38 per cent), local equities (24 per cent), and cryptocurrency (22 per cent).
Investment patterns varied notably across generations, with Gen Z investors leading the adoption of cryptocurrency and robo-advisors.
Millennials spread their portfolios across ASNB funds, unit trusts and equities, while Gen X maintained a stronger preference for real estate investments.
Gender differences also emerged in investment choices, with women gravitating toward ASNB and precious metals, while men leaned more towards equities, cryptocurrency and robo-advisors.
The survey also found that 68 per cent of Malaysians now rely on social media as their primary channel for financial education, with trust in these platforms rising notably.
Respondents rated social media's trustworthiness at 4.3 out of 5, compared to 4.0 in 2024.
Yuen credited BNM for maintaining a stable and well-regulated financial market, while also commending government initiatives such as the higher minimum wage and the RM100 one-off Sumbangan Asas Rahmah (Sara) aid as positive drivers of change.
"These initiatives are clearly having a positive impact on raising the standard of living among Malaysians.”
