PETALING JAYA, Oct 1 — Middle-income Malaysians earning between RM5,000 and RM10,000 monthly are experiencing a concerning decline in their ability to save, according to the RinggitPlus Malaysian Financial Literacy Survey 2025.
The survey found this group to be the only income segment to report deteriorating financial health, with those saving less than RM500 a month rising sharply from 31 per cent last year to 39 per cent.
Those managing to save between RM1,000 and RM1,500 meanwhile, dropped from 29 per cent last to 23 per cent.
This group is also the most likely to be cutting back on leisure activities and subscription services to make ends meet.
The decline in financial resilience is also particularly stark, with only 27 per cent of middle-income Malaysians believing they could survive for more than six months without an income.
Rising costs have also forced Malaysians across all income brackets to reassess their insurance coverage, the survey found, with 22 per cent of policyholders having either reduced or cancelled their policies in the past year due to affordability concerns.
The situation is especially dire for lower-income households, with the survey revealing a significant protection gap: 43 per cent of Malaysians remain without medical insurance and fewer than half holding life insurance policies.
RinggitPlus chief executive officer Yuen Tuck Siew acknowledged the financial pressures facing middle-income earners but said that the survey did not delve into the underlying causes.
"Unfortunately, our survey didn't really go into the details of why. But we're all aware of the broad challenges such as inflation across multiple areas," he said at the survey launch here today.
Despite the challenges, retirement confidence showed modest improvement, with 22 per cent of Malaysians now saying their Employees Provident Fund (EPF) savings will be sufficient for retirement, up from 19 per cent in 2024.
Kaf Digital Bank chief executive officer Rafiza Ghazali speaks to the media after the launch of the Malaysian Financial Literacy Survey 2025 at Common Ground Jaya One, Petaling Jaya, on October 1, 2025. — Picture by REMY ARIFIN/MEDIA SELANGOR
Kaf Digital Bank chief executive officer Rafiza Ghazali speaks to the media after the launch of the Malaysian Financial Literacy Survey 2025 at Common Ground Jaya One, Petaling Jaya, on October 1, 2025. — Picture by REMY ARIFIN/MEDIA SELANGOR
On the role of digital financial services, Kaf Digital Bank CEO Rafiza Ghazali stressed the importance of regulation in building consumer trust, particularly for third party apps offering micro savings or investment products.
"Consumers should be given a choice, but trust is critical. There are many third-party apps out there, and people need to feel secure. That's why regulation matters.
“Digital banks and e-wallets are regulated, which provides reassurance. Having that regulatory stamp builds trust, which is essential in the consumer market," she said.
The survey polled 3,113 Malaysians aged 18 and above, across all states and federal territories and was conducted in English, Bahasa Malaysia, and Chinese.
