Kuala lumpur: Lower-income Malaysians are making noticeable strides in financial planning, with a growing number of individuals initiating retirement plans, according to RinggitPlus. The financial comparison platform highlighted these developments in their 2025 Malaysian Financial Literacy Survey (RMFLS), which analyzed the financial behaviors and attitudes of over 3,000 Malaysians.
According to BERNAMA News Agency, RinggitPlus CEO Yuen Tuck Siew revealed that 55% of those earning less than RM2,000 monthly have begun preparing for retirement in 2025, an increase from 48% in 2024. This shift is attributed to enhanced financial education initiatives, government support programs, and a recent rise in the minimum wage, which have collectively supported communities facing escalating living expenses.
Yuen also noted improvements in financial literacy among the lower-income demographic, with a decrease in the number of respondents unfamiliar with credit scores-from 45% to 40%-indicating a growing awareness of credit’s role in financial health. Furthermore, 36% of lower-income respondents reported avoiding Buy Now, Pay Later (BNPL) services, the highest avoidance rate across all income levels, suggesting a move towards prudent debt management amid economic uncertainties.
Conversely, the middle-income group is experiencing a decline in savings, with only 23% of individuals earning between RM5,000 and RM10,000 per month managing to save between RM1,001 and RM1,500 monthly in 2025, down from 29% in 2024. Although 48% of Malaysians believe their financial situation has improved, only 54% of middle-income earners feel better off-down from 58% the previous year-indicating potential financial vulnerability despite broad-based support measures like fuel subsidies.
The survey also identifies young Malaysians as a promising demographic, with 40% saving over RM500 monthly in 2025, up from 36% in the previous year. However, rising insurance costs have led 22% of policyholders to switch to cheaper plans or cancel policies due to affordability issues, with 43% of Malaysians still without medical insurance and 15% relying solely on company-issued medical cards.
Yuen praised Bank Negara Malaysia’s (BNM) initiative requiring personal loan applicants requesting amounts over RM100,000 to complete a financial education module, emphasizing the importance of financial literacy in enhancing life quality. BNM announced on Tuesday that this requirement aims to aid consumers in managing debt and navigating financial challenges effectively.