AKPK - Financial Behaviour and State of Finanical Well-Being of Malaysian Working Adult PDF

Financial Behaviour and
State of Financial Well-being

of Malaysian Working Adults
AKPK Financial Behaviour Survey 2018 (AFBeS’18)

Financial Behaviour and
State of Financial Well-being
of Malaysian Working Adults
AKPK Financial Behaviour Survey 2018 (AFBeS’18)

© 2018 Agensi Kaunseling dan Pengurusan Kredit
All rights reserved
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been taken to ensure the accuracy of the information in this report. However, AKPK cannot
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Tel: 03 2616 7766
Email: research@akpk.org.my
Table of Contents
5 Foreword
6 Executive Summary
7 Key Findings
10 About the Respondents
13 Part 1 - Financial Behaviour
33 Part 2 - Financial Well-being
45 Part 3 - Key to Financial Well-being
53 Conclusion
56 Appendices
67 References
AKPK Financial Behaviour Survey 2018
Acknowledgements to:
FINANCIAL BEHAVIOUR AND STATE OF FINANCIAL WELL-BEING OF MALAYSIAN WORKING ADULTS 5
FOREWORD
This inaugural large-scale survey is a major For this survey, we acknowledge the
milestone for Agensi Kaunseling dan contribution of our team of research advisors:
Pengurusan Kredit (AKPK) in realising its i. Professor Dr Zainuddin Awang, Universiti
vision ‘to create a society that is financially Sultan Zainal Abidin (UniSZA)
savvy’, ‘to be recognised as the trusted ii. Associate Professor Dr Cordelia Mason
provider of financial education to adult (Co-author), Universiti Kuala Lumpur
consumers’, and ‘to continue to promote (UniKL)
financial prudence’; and to accomplish iii. Associate Professor Dr Hawati Janor,
its mission ‘to make prudent financial Universiti Kebangsaan Malaysia (UKM)
management a way of life’. iv. Associate Professor Dr Mohamad Fazli
Sabri, Universiti Putra Malaysia (UPM)
The survey is inspired by other global and v. Assistant Professor Dr Maya Puspa Rahman,
national research initiatives on financial literacy International Islamic University Malaysia
and financial well-being by the World Bank, (IIUM)
the OECD, the Consumer Financial Protection vi. Associate Professor Dr Vinitha Guptan,
Bureau of America and Bank Negara Malaysia. Saito University College
This research focuses on financial behaviour
that forms a part of financial literacy. However, We would also like to express our appreciation
it differs from the previous studies mentioned to our nationwide respondents who participated
in that it also explores the impact of financial in the survey and to our AKPK team who
behaviour on financial well-being. steadfastly managed this inaugural research
project. The team members’ full commitment
Understanding financial behaviour and the and high level of professionalism are valuable
state of financial well-being is of paramount assets which AKPK can leverage on towards
importance. Firstly, insights on these could building a strong research culture that will drive
facilitate the development and refinement AKPK forward in achieving its goal of enhancing
of initiatives to promote prudent financial financial literacy among Malaysians.
management as a key driver towards attaining
financial well-being. Secondly, the low It is our sincere hope that this research report
financial literacy rate in Malaysia, found to would benefit various stakeholders such as
be below average and ranked 26th among policy makers, regulators, academicians, the
30 participating countries in the OECD 2016 financial services industry, consumer associations,
report, calls for attention to measure the level consumers and other relevant parties.
of financial wellness in Malaysia. Finally, the
results of this survey could be used as a guide Let us all strive to improve the financial well-
in the curriculum development of financial being of all citizens of our nation.
literacy modules, and as empirical data to
derive effective key messages for the relevant Azaddin Ngah Tasir
stakeholders. Chief Executive Officer
6 FINANCIAL BEHAVIOUR AND STATE OF FINANCIAL WELL-BEING OF MALAYSIAN WORKING ADULTS
EXECUTIVE SUMMARY
AKPK embarked on this research to study towards paying loan instalments and credit
the financial behaviour and financial well- card payment.
being of Malaysian Working Adults (MWAs)
who form the largest segment of clients in The other main focus of this study is the
the financial services industry. Specifically, financial well-being among MWAs. Financial
the study focuses on the financial behaviour well-being is a state where people can fully
of MWAs in terms of their spending, savings meet their current and ongoing financial
and debt management. The respondents obligations, feel secure about their financial
were profiled according to gender, age future and are able to make choices for them
group, ethnicity, marital status, number of to enjoy life (Consumer Protection Bureau,
dependants, employment, type of industry, 2017). Financial well-being is associated with
designation, monthly income and region. financial literacy, financial behaviour and skills.
The study describes the MWAs’ financial
behaviour according to their heterogeneous This study was conducted using a self-
profiles. The study also determines the administered survey questionnaire. Over
level of financial well-being among MWAs 3,500 completed surveys were collected
and tries to answer the question of whether nationwide. The key findings on financial
good financial behaviour leads to better behaviour and financial well-being are
financial well-being. It aims to identify the outlined on pages 7, 8 and 9.
MWAs who are financially comfortable
as opposed to those who are financially Financial behaviours among MWAs have much
challenged. room for enhancement and the importance of
doing so is paramount given their current
Financial behaviour in the scope of this study state of financial well-being. Based on
is a function of spending behaviour, savings, the insights gained from this study, it is
retirement and investment as well as debt recommended that initiatives be carried out
management. Spending behaviour among on issues pertaining to indebtedness, cost of
MWAs covers their behaviours in terms of living, home ownership, and income structure
preparing a spending budget, assessing by industry. It also highlighted the importance
affordability before spending and deciding of financial education that can shape better
what to do if they have surplus money. In financial behaviour which in turn, leads to
order to describe the savings behaviour better financial well-being. With an improved
among MWAs, the study asked how much understanding of the landscape of financial
they save, whether they have retirement behaviour and state of financial well-being,
plans and why they are unable to save. To the relevant stakeholders could provide
complete our understanding of the financial effective financial education initiatives.
behaviour among MWAs, we looked at
debt management aspects – the level of
debt, composition of loans taken, attitude Enjoy reading!
KEY FINDINGS
Behaviour
Financial behaviour influences

Well-being
financial well-being
Having clear financial goals

improves financial behaviour
Financial education plays a big role

to improve financial behaviour which
in turn leads to better financial well-
being
Weak Low Reasonable Good Exemplary

Score 0 5.0 6.0 8.0 9.0 10
Average MWAs
(7.02)
Percentage 6% 18% 52% 19% 5%

of MWAs
in each
categories
Reasonable Financial Behaviour score of 7.02 among

MWAs
• Half (52%) of MWAs fall within the reasonable score range of between 6.0 to
8.0
• Almost a quarter (24%) falls on the good and exemplary score range
• Another quarter miserably sat on the low and weak score range
The self-employed score the lowest on the financial

behaviour
2 out 10 MWAs (18%) have no savings in the previous

six months
High cost of living is the main reason why many

MWAs are unable to save
Government employees form the highest percentage of

borrowers of personal loans
More than half of those about to retire are still

servicing housing and car loans
Settling debt faster is the number one financial goal

of MWAs
Under Pressure Need Attention Surviving Comfortable Elated

Score 0 5.0 6.0 8.0 9.0 10
Average MWAs
(6.21)
Percentage 21% 24% 39% 10% 6%

of MWAs
in each
categories
The average financial well-being score is at the low edge

of surviving category with a score of 6.21
• Well over than a third (39%) of MWAs falls within the surviving category with
a score range of between 6.0 to 8.0
• Only 10% of MWAs falls under the comfortable category and a mere 6% are
in the elated mode
• Almost half fall under need attention and under pressure categories
The self-employed are most vulnerable as they are

most challenged in terms of financial well-being
Employees who are working in the agriculture, army,

police and enforcement sectors score among the
lowest on financial well-being
Almost 3 out of 10 (28%) need to borrow to buy

essential goods
More than half (53%) of those earn less than RM2,000

cannot afford the RM1,000 emergency expenses
ABOUT THE RESPONDENTS

Total Sample:
3,540 Malaysian Working Adults
Northern
Region
Region
19%
East Coast
Region
14% East
Central Region Malaysia
36% 14%
Southern
Region
17%
Gender Age
Male
48%
Female 20-29 30-39 40-49 50-60

52% 20% 41% 26% 13%
Ethnicity
Malay/Bumiputera Chinese Indian Others

67% 19% 8% 6%
Marital Status
Single
23%
Married
74%
Divorced/Single Parent
3%
Number of Dependants
6 or more 5%
5 7%
4 12%
3 15%
2 18%
1 10%
No Dependants 33%
Highest Qualification
Primary School Secondary School Diploma

1% 30% 22%
First Degree Master’s Degree/PhD Professional

35% 8% 2%
Employment Sector
Self-employed Private Government

9% 45% 46%
Designation
Senior
Executive Management
35% 3%
Manager
14%
Non-Executive
48%
Monthly Income
Less than RM2,001 to RM4,001 to RM6,001 to RM8,001 to More than

RM2,000 RM4,000 RM6,000 RM8,000 RM10,000 RM10,000
19% 31% 28% 12% 6% 4%
PART 1
FINANCIAL
BEHAVIOUR
MEASUREMENT OF FINANCIAL BEHAVIOUR
1.1 INTRODUCTION
In this study, the measurement of financial and investment behaviour, as well as debt
behaviour is based on three areas covered by management behaviour. The indicators that
the AKPK financial education modules which fall under each area of financial behaviour are
are spending behaviour, savings, retirement summarised in Table 1.
Table 1: Areas of Financial Behaviour

Savings, Retirement &
Spending Debt Management
Investment
• I record all my spending • I save first before spending • I pay my loan instalments
• I prepare a spending budget • I plan my finances for on time
• I assess my affordability retirement • I ALWAYS pay more than
very carefully before buying • I invest in legal investment 5% (minimum payment) of
something • When I have excess my credit card
• I spend my money according money, I normally save for • When I have excess
to plan retirement money, I normally pay my
• When I have excess money, I • When I have excess money, debts
normally spend on essential I normally save (other than
items retirement)
• When I have excess money, • When I have excess
I normally spend on things money, I normally invest in
which I want investment/business
What is the level of financial behaviour among the survey also found that on average, their
MWAs? This survey found that the financial behaviour on debt management is the highest
behaviour of MWAs is at the score of 7.02. This (7.47) followed by their behaviour on savings,
indicates that the overall financial behaviour retirement and investment (6.94) and their
across three dimensions as illustrated in Chart spending behaviour, which scores lowest at
1 is at the reasonable level between a score 6.89.
of 6 to 8. Looking further into each dimension,
Chart 1: Level of Financial Behaviour among MWAs

7.47 7.02
6.94
6.89
Spending Savings, Retirement Debt Management Overall Financial

& Investment Behaviour
Diagram 1: Percentage of MWAs in Each Profiles Based on the Level of

Financial Behaviour
Weak Low Reasonable Good Examplary

Score 0 5 6 8 9 10
Gender
Male 7% 19% 51% 18% 5%
Female 5% 17% 54% 19% 5%
20 - 29 7% 19% 51% 18% 5%
30 - 39 6% 19% 52% 18% 5%

Age
40 - 49 4% 17% 55% 19% 5%
50 - 59 4% 15% 50% 23% 7%

Employment
Private 6% 20% 52% 17% 5%
Government 4% 17% 53% 20% 6%
Self-employed 11% 18% 47% 21% 3%
<4,000 7% 21% 50% 17% 5%

Monthly
Income
(RM)
4,000 - 8,000 4% 16% 54% 21% 5%
>8,000 5% 12% 54% 21% 8%

dependants
Dependants 6% 19% 51% 20% 4%

No. of
No Dependants 5% 17% 53% 19% 6%
Whole sample 5% 18% 52% 19% 5%
Note: Average Score is 7.02
How do the scores differ between the profiles difference among Gender, Age, Number of
of respondents? Based on a statistical Dependants, Employment Type and Income
analysis (ANOVA, refer Appendix 1) it is Level with regard to their financial behaviour
proven that there is statistically significant scores.
1.2 SPENDING BEHAVIOUR Those who earn more than RM10,000 score
6.65 while those earning between RM8,001
In the area of financial spending, the survey to RM10,000 score the lowest average score
asks whether respondents prepare a spending (6.60); indicating that those from the higher
budget, assess affordability before spending, income bracket are less likely to plan their
recorded all their spending, spend according spending.
to plan and spend on essential items rather
than on their wants. The full results are It is observed that those who are more
provided in Appendix 2. Some of the findings financially challenged i.e. those who have
are detailed below: more dependants to care for and those in
the lower income groups are more likely to
PREPARE A SPENDING BUDGET prepare a spending budget.
On average, females with an average
score of 7.04 are more likely to plan their
spending compared to males who score
6.79. In terms of age, those most serious Females are more
likely to plan their
in preparing a spending budget fall under
the 50-59 group (7.00), followed by these
groups: 20-29 (6.96), 30-39 (6.89) and 40- spending compared
49 (6.88).
to males
Government employees are most likely to
plan their spending, scoring an average of
7.12; followed by the self-employed (6.84),
and those working in the private sector
(6.73). In terms of job designation, non-
executives have the highest average score
of 7.04 and are closely tailed by the senior
management who score only 0.02 lower at
7.02. Executives scored an average of 6.81
whilst managers score 6.76, which stood at
the lowest average score point.
The group earning between RM4,001 to

RM6,000 record the highest average score
of 7.08, followed by those earning between
RM2,001 to RM4,000 with an average score
of 6.92. The average scores of those earning
below RM2,000 and those earning between
RM6,001 to RM8,000 are the same at 6.86.
Chart 2: Preparing a Spending Budget, Average Score of 6.92
6.20 6.40 6.60 6.80 7.00 7.20
Male 6.79
Gender
Female 7.04
20 - 29 6.96
30 - 39 6.89
Age
40 - 49 6.88
50 - 59 7.00
No. of No Dependants 6.81

dependants
1 to 5 6.89
Private 6.73
Employment Government 7.12
Self-employed 6.84
Less than 2000 6.86
2001 to 4000 6.92

Monthly 4001 to 6000 7.08
Income
6001 to 8000 6.86
(RM)
8001 to 10000 6.60
More than 10000 6.65

ASSESSING AFFORDABILITY BEFORE The average scores of the four age groups do
SPENDING not differ significantly with the highest at 7.92
Assessing whether you can afford something for the 50-59 group and the lowest at 7.69 for
before making a purchase promotes financial the thirties range. This indicates that MWAs
well-being. What does this survey tell us about do assess affordability before spending.
the purchasing behaviour of the MWAs?
Those over 50 years old are more conscious
The survey results show that female about affordability. This could perhaps be due
respondents have a slightly higher average to the fact that they are approaching retirement
score (7.84) than males (7.75) – indicating that age. For those in the 30s, some possible reasons
females are more likely to assess affordability for them scoring the lowest average score are
before spending. due to their need to start or raise a family, and
having to buy a house or a car.
Chart 3: Assessing Affordability, Average Score of 7.80
7.20 7.40 7.60 7.80 8.00
Male 7.75
Gender
Female 7.84
20 - 29 7.85
30 - 39 7.69
Age
40 - 49 7.87
50 - 59 7.92
No Dependants 7.73
No. of
1 to 5 7.82
dependants
6 or more 7.83
Private 7.71
Self-employed 7.49
Less than 2000 7.66
2001 to 4000 7.76

Monthly 4001 to 6000 7.86
Income
6001 to 8000 7.92
(RM)
8001 to 10000 7.81

1.3 PROPENSITY TO SAVE any savings in the last six months. A little
AMONG MALAYSIAN more than half of the respondents (53%)
WORKING ADULTS are only able to save between 1% to 10% of
their income; 16% can only save between
The state of savings among MWAs leaves 11% to 20 % of their income and a mere
much to be desired. Almost two out of 13% could save more than 20% of their
every ten people (18%) are unable to make income.
Chart 4: Savings to Income Ratio (Range)
18% 53% 16% 13% Those who earn

less than RM2,000
are most financially
challenged when it
comes to savings
(average 5.54%)
No 1% to 11% to More than
Savings 10% 20% 20%
Those who choose

to be self-employed
Chart 5: Breakdown for Those
Who Save Between 1% to 10%
have the lowest
33% 67%
propensity to save
(average 6.89%)
1% to 5% 6% to 10%
On average, females save a higher percentage self-employed who only save 6.89% of their
(10.18%) of their income compared to monthly income. Position and income also
males (8.85%). Those in the age groups correlate to the ability to save of the working
of 20-29 and 50-59 save more than those adults. The higher the position, the more one
in the 30-49 age group. Those with more saves. In terms of income, those who earn
dependants save less as they need to spend between RM8,000 and RM10,000 save the
on essential items. Savings are highest for most. The groups which save the least are
those working in private companies, followed those who earn less than RM2,000 who can
by the government employees and finally the only save 5.54% of their income.
Chart 6: Monthly Savings Ratio, Average of 9.53%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%
Male 8.85%
Gender
Female 10.18%
20 - 29 10.43%
30 - 39 8.93%
Age
40 - 49 9.38%
50 - 59 10.50%
No Dependants 10.57%
No. of
1 to 5 9.10%
dependants
6 or more 8.23%
Private 10.29%
Employment Government 9.28%
Self-employed 6.89%
Less than 2000 5.54%
2001 to 4000 9.27%

Monthly 4001 to 6000 9.58%
Income
6001 to 8000 11.89%
(RM)
8001 to 10000 12.70%
More than 10000 11.97%

WHY CAN’T MWAs SAVE? no spending plans, and the unreadiness to

As stated earlier, almost one-fifth or 18% of save.
MWAs are unable to save. What could be
the reasons for this? Out of seven possible The inability to save may be due to the vicious
reasons suggested by the survey, the cycle of having to manage with only limited
main reason is the cost of living, scoring financial resources attributed to the high cost
a mean value of 8.22. This is followed by of living which in turn leads to not having
the following reasons i.e. having no surplus surplus income for savings. In this situation, it
income, high debt, uncertain about how would be unlikely that one can plan to save,
much to save, frequent overspending, having what more to be ready to save.
Chart 7: Ranking of Reasons as to Why MWAs Could Not Save Enough
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7
8.22
7.18
7.15
6.50
5.94
5.69 5.27
Cost of Do Not High Debt Do Not Often No Not

Living Have Surplus Commitment Know How Overspend Spending Ready
Income Much to Save Plan to Save
High cost of living

is the main reason
why many Malaysian
working adults are
unable to save
PLANNING FOR RETIREMENT dependants come in second (7.06), perhaps

INTENSIFIES AS ONE GETS OLDER because they have many mouths to feed,
Do MWAs plan well and save for retirement? while those without dependants scored the
Do they aim to retire in comfort? This lowest (7.02).
survey shows that both male and female
respondents do plan for retirement with the Government employees top the list in planning
fairer gender leading at 7.17 score versus for retirement, followed by those who work in
7.09 for males. the private sector and lastly the self-employed;
a similar pattern to the propensity to plan
In terms of number of dependants, spending. In terms of designation and income,
respondents who have between one to the higher the job level and income, the
five children are most likely to plan for their higher the mean score for retirement planning.
retirement (7.20). Those with more than five See Appendix 3 for full results.
Chart 8: Retirement Planning, Average Score of 7.13
6.20 6.40 6.60 6.80 7.00 7.20 7.40 7.60 7.80 8.00
Male 7.09
Gender
Female 7.17
20 - 29 6.97
30 - 39 6.88
Age
40 - 49 7.30
50 - 59 7.79
No Dependants 7.02
No. of
1 to 5 7.20
dependants
6 or more 7.06
Private 7.03
Self-employed 6.86
Less than 2000 6.75
2001 to 4000 6.94

Monthly
4001 to 6000 7.30
Income
(RM) 6001 to 8000 7.44
8001 to 10000 7.66

1.4 DEBT MANAGEMENT The self-employed are less likely to pay their
loan instalments on time, scoring below
MWAs’ ATTITUDE TOWARDS PAYING average at 6.76 while those who work in the
LOAN INSTALMENTS government score above average at 8.03,
Chart 9 summarises the average financial compared to private sector employees at
behaviour scores for the sub-groups in terms 7.87. Non-executives struggle to pay their
of loan management skills i.e. paying loan loan instalments on time.
instalments on time. The average overall score
is 7.85. Profiled by gender, female MWAs MWAs earning less than RM4,000 are
score an average of 8.01 point compared to challenged to pay their loan instalments on
males who score 7.68, i.e. below average. By time. As expected, the ability to pay loan
age group, those in the 20-29 (7.69) and 30- instalments on time generally increases as one
39 (7.81) groups score below average while earns more. This is supported by the scores
those from the 40-59 group are more likely to recorded as follows: 8.01 for those earning
pay loan instalments on time. between RM4,001 to RM6,000, 8.21 for the
RM6,001 to RM8,000 income bracket, and
Those with 1 to 5 dependants are most likely 8.62 for those earning more than RM10,000.
able to pay loan instalments on time scoring Although at an above-average score of
above average by 0.03 points at 7.88. Those 8.09, the group earning between RM8,001
with more than 5 dependants and those with to RM10,000 score lower than those in the
no dependant score lower than average at RM6,001-RM8,000 income bracket. See
7.82 and 7.75 respectively. Appendix 4 for full results.
The self-employed
are most
challenged in
paying loans on
time
Chart 9: Paying Loan Instalments on Time, Average Score of 7.85
0.00 2.00 4.00 6.00 8.00 10.00
Male 7.68
Gender
Female 8.01
20 - 29 7.69
30 - 39 7.81
Age
40 - 49 7.95
50 - 59 8.01
No Dependants 7.75
No. of
1 to 5 7.88
dependants
6 or more 7.82
Private 7.87
Self-employed 6.76
Less than 2000 7.17
2001 to 4000 7.83

Monthly 4001 to 6000 8.01
Income
6001 to 8000 8.21
(RM)
8001 to 10000 8.09

FINANCIAL CHALLENGES TO SETTLE age groups, there are minimal differences. In

CREDIT CARD PAYMENTS terms of employment, the self-employed are
Paying only 5% or a minimum payment on most likely to adopt this habit, followed by
credit card accounts has negative impact on private sector employees and government
financial wellness. How severe is this problem employees.
among the groups surveyed?
In terms of monthly income, MWAs from
Those prone to paying only 5% or a minimum the lower income bracket are most likely to
payment on credit card accounts are the pay only the minimum payment compared
Malays/Bumiputeras and ‘Others’. Among the to the rest.
Chart 10: Paying more than 5% Minimum Payment, Average Score of 6.82
0.00 2.00 4.00 6.00 8.00 10.00
Male 6.54
Gender
Female 7.09
20 - 29 6.83
30 - 39 6.88
Age
40 - 49 6.81
50 - 59 6.66
No Dependants 6.88
No. of
1 to 5 6.75
dependants
6 or more 6.82
Private 6.86
Self-employed 6.38
Less than 2000 6.72
2001 to 4000 6.73

Monthly 4001 to 6000 6.66
Income
6001 to 8000 6.98
(RM)
8001 to 10000 7.41

LOAN EXPOSURE (53%) compared to females (47%). With

What is the level of debt exposure among the increasing number of car ownership
MWAs? How do they compare across profiles? in Malaysia and a non-extensive public
The survey shows that the percentages of transportation system, car loan tops the
debt exposure between male and female types of loans taken by MWAs with 62% of
MWAs do not differ much in terms of them males and 56% of females reporting that
taking loans. Of the six most common types they have car loans to service.
of loans, males score higher in five types
i.e. housing loans, car loans, personal loans, Of particular concern is the result that shows
credit card loans and non-bank related loans. almost half (44%) of male respondents and
This means that males are more likely to take over a third (35%) of female respondents have
these types of loans compared to the females. credit card loans. Will their financial wellness
Interestingly, perhaps reflecting on the higher be compromised?
percentage of females enrolling in higher
education, it is not surprising that education Taking non-bank related loans is reported
loan is higher for female respondents, albeit by almost one fifth of male respondents and
a mere 1%. more than one in ten (13%) females. Given
the worrying activities of unscrupulous loan
Male respondents are more likely to sharks and unlicensed money lenders, this
shoulder the burden of housing loans may be an area that requires some vigilance.
Chart 11: Ownership of Loans by Gender

53%
47%
50%
62%
56%
59%
23%
24%
23%
52%
46%
49%
44%
35%
39%
17%
13%
15%
Housing Car Education Personal Credit Card Non-bank
Male Female Overall

LOAN PATTERN AMONG

THE AGE GROUP CLUSTERS
OF MWAs IN THIS SURVEY
What types of loans do MWAs More than half of
take at different stages of their those about to retire
are still servicing
lives? This survey shows that
loan composition changes over a
person’s lifetime. All age groups housing and car loans
subscribe to car loans the most,
with the exception of the 40-49
age group. This age group scores
slightly higher on housing loans in
terms of percentage compared to
car loans.
For the youngest age group (20-

29 year old), car loans top the
list in percentage, followed by
education loans, personal loans,
housing loans, and lastly non-
bank loans. At this age, about
half of MWAs prioritise having a
car and also servicing education
loans.
For the 30-39 age group, the top

three types of loans which the
MWAs have to service are car
loans, personal loans and housing
loans. It is noted that in the last
few years, getting a housing
loan is becoming more difficult
in Malaysia as property prices
have gone up in a much greater
proportion than salary increase.
This probably explains why the
percentage of them having a
housing loan is lower compared
to those having a car loan that is
easier to apply.
For the 40-49 age group, housing loans top the More than half of the 50-59 age group are
list. At this age, most MWAs are still servicing still servicing car and housing loans. More
their housing loans as well as car loans. than a third (40%) are still servicing personal
Personal loans are tapering off for this group and credit card loans, and more than one in
but credit card loans show a surge compared ten are servicing non-bank loans. The level
to the younger age groups where almost half of indebtedness may be an area of concern
of this age segment have credit card loans. for this group.
Chart 12: Ownership of Loans by Age Group and Types of Loans

100%
90%
80%
70%
Percentage of Loan Ownership
Car
60%
Housing
50%
Credit Card
40% Personal
30%
20%
Non-bank
10% Education
0%
20-29 30-39 40-49 50-59
Age Group
DEBT TO INCOME RATIO OF MWAs who earn between RM4,001 to RM6,000,

How much do MWAs borrow compared to their exposure range is lower i.e. between
their income? What is their debt exposure like? 27% to 36% with an average total instalment
This study found that MWAs who earn less than of RM2,147. The average total instalment
RM2,000 has a debt to income ratio of 49% continues to rise and those who earn between
with an average total instalment of RM988. RM8,001 to RM10,000 pay RM2,508 monthly
Those who earn between RM2,001 to RM4,000 and those who earn more than RM10,000 pay
is exposed between 27% and 55% with an RM2,633. Their debt to income ratio is 25% to
average instalment of RM1,099. For those 31% and up to 26% respectively.
Table 2: Range of Monthly Instalment Payment and Debt to Income Ratio

Less than RM2,001 to RM4,001 to RM6,001 to RM8,001 to More than
2,000 RM4,000 RM6,000 RM8,000 RM10,000 RM10,000
Average total
988 1,099 2,215 2,147 2,508 2,633
instalment (RM)
Debt to Income 27% to 37% to 27% to 25% to
49% up to 26%
Ratio (range) 55% 55% 36% 31%
TYPES OF LOANS TAKEN BY THE The percentage of Indians paying for

DIFFERENT RACES education is the highest at 26%, with the
The 3 main ethnicities surveyed do not Malays/Bumiputeras follow closely behind at
differ much in terms of percentage of 25%. Only 16% of the Chinese have education
MWAs taking housing or car loans with loans to pay. Could it be that they save more
for education?
slightly more than half of each of the three
major races taking housing loans; Malays/
More than half of the Malays/Bumiputeras
Bumiputeras (50%), Chinese (53%) and
(56%) are financing personal loans, while 58%
Indians (52%).
of the Chinese respondents have credit card
loans to service.
Chart 13: Ownership of Loans by Races and Types of Loans

50%
53%
52%
60%
54%
58%
25%
16%
26%
56%
26%
39%
34%
58%
42%
18%
11%
7%
Malay/Bumiputera Chinese Indian

TYPES OF LOANS TAKEN BY MWAs

ACCORDING TO EMPLOYMENT TYPE Government
What types of loans do MWAs take if they
are differentiated by employment type? In
employees form the
this survey, respondents are categorised into highest percentage of
three employment types namely those in borrowers of personal
loans
the private sector, those in the government
sector and those who are self-employed. Of
these three categories, it is observed that
government employees form the highest
percentage of borrowers of personal loans
(65%), housing loans (55%) and non-bank
loans (18%). Could access to government
housing loans be a contributing factor?
Those who work in the private sectors top

the list of borrowers in terms of percentage
for car loans (60%) and credit cards (45%).
The three groups tie on education loans
(23% across the board). On non-bank loans,
private sector employees tie with the self-
employed at 13%.
Chart 14: Ownership of Loans by Employment Type

48%
55%
36%
60%
59%
48%
23%
23%
23%
35%
65%
39%
45%
34%
39%
13%
18%
13%
Private Government Self-employed

TYPES OF LOANS TAKEN BY MWAs people among this group are pursing life-long
CLUSTERED BY JOB DESIGNATION education.
Among senior management personnel, 73% Those at the managerial level are laden with
have car loans, 70% have housing loans, loans where 71% of them have housing loans,
61% have credit cards, 58% have personal 69% take car loans, 62% have credit cards,
loans, 16% have non-bank loans and 6% have 40% service personal loans, 18% pay off their
education loans, indicating that only a few education loans and 9% have non-bank loans.
Chart 15: Ownership of Loans by Designation and Types of Loan

40%
56%
71%
70%
53%
64%
69%
73%
24%
27%
18%
55%
42%
40%
58%
26%
51%
62%
61%
18%
11%
16%
6%
9%
Non-executive Executive Manager Senior Management
Non-executive
and senior
management
level of the
MWAs are the
highest takers
of non-bank
loans compared
to other
designation
groups
The executive level workers are also years of age would rather spend on essential
exposed to debts with different types of items. A few questions can be raised as to why
loans, namely housing loans (56%), car loans youngsters are more casual about spending
(64%), credit cards (51%), personal loans compared to the more cautious senior citizens
(42%), education loans (27%) and non-bank who are about to retire. Could it be that
loans (11%). those in the younger age bracket have not
accumulated as much debt as the rest and
Despite getting a lower pay range, the are therefore more carefree about spending?
non-executives are also exposed to various Does the high average score of ‘pay off debt’
types of debts in the following percentages: suggests that a debt-ridden individual would
personal loans (55%), car loans (53%), be less likely to invest or spend for wants as
housing loans (40%), credit cards (26%), he does not have much to invest or indulge
education loans (24%) and non-bank loans in the first place?
(18%). This group could be from those at
the lower age group too as indicated by So, how did the respondents rank the six
almost one in four (24%) of the respondents choices given? The survey found that only
who are still paying for their education. The the age factor influences MWAs’ decision
fact that 18% of them are taking non-bank on how they would spend their excess
loans suggests that they may not yet have money. Paying off debt is what the MWAs
high credit worth. choose to do first if they have excess money.
Subsequently, most will spend on essentials
before considering savings for retirement
EXCESS MONEY and other reasons. Being pre-occupied
When given six choices of what they would with settling their debts and working hard
do if they have surplus money, paying off to save for various needs as well as for
debts tops the selection for those between retirement might be the reasons why the
the ages of 50 and 60. On the other hand, the MWAs place investing and spending on
youngest group comprising those of 20-29 wants as their lowest priorities.
Table 3: What Do MWAs Choose to Do with Excess Money?
Age
Overall
20 – 29 30 – 39 40 – 49 50 - 60
Pay Debt 1 1 (7.69) 2 (7.58) 1 (7.69) 1 (7.68) 2 (7.88)
Spend on Essentials 2 2 (7.61) 1 (7.65) 2 (7.55) 2 (7.60) 3 (7.73)
Save for Other than Retirement 3 3 (7.44) 3 (7.51) 3 (7.30) 3 (7.50) 4 (7.64)
Save for Retirement 4 4 (7.17) 4 (7.00) 4 (6.91) 4 (7.32) 1 (7.89)
Invest 5 5 (5.91) 5 (5.86) 5 (5.78) 5 (5.94) 5 (6.30)
Spend on Wants 6 6 (5.73) 6 (4.96) 6 (5.25) 6 (5.44) 6 (5.48)
PART 2
FINANCIAL
WELL-BEING
2.1 MEASUREMENT OF A comfortable financial position is described

FINANCIAL WELL-BEING in this study as having enough money to cover
basic needs and also some extra money at
Financial well-being in the context of this the end of the month, having the confidence
survey relates to the ability to make ends meet, to achieve short-term and long-term financial
feeling comfortable with one’s current financial goals and the confidence to be able to retire
position and having financial resilience. comfortably.
A person is said to be able to make ends meet In this study, one is considered to have
when he is in a financial position to cover his financial resilience if his financial position is
daily expenses, can afford to buy the items enough to cover an emergency expenditure
he want and does not resort to borrowing to of RM1,000, medical costs of RM2,500 and
buy basic needs. three months’ expenses if retrenched.
Table 4: Financial Well-being Dimensions

Feeling Comfortable with
Ability to Make Ends Meet Financial Resilience
Current Financial Position
• I do not have to borrow to • I have extra money at the • My financial position is
buy basic needs end of the month steady enough to cover an
• I can afford to buy the • I am confident of achieving emergency expenditure of
items that I want my short-term financial RM1,000
• I feel my financial position goals • My financial position is
is steady enough to cover • I am confident of achieving steady enough to cover
my daily needs my long-term financial medical costs of RM2,500
goals • My financial position is
• My financial position steady enough to cover my
is steady enough to expenses for 3 months if I
cover my basic needs were to be retrenched
to live comfortably after
retirement
• My financial position is
steady enough to cover
holiday costs of RM4,000
2.2 THE LEVEL OF

FINANCIAL WELL-
BEING AMONG
MALAYSIAN
Financial well-being
WORKING ADULTS improves in tandem with
age, income and level
of designation of the
The survey found that the average
score of 6.21 for level of financial
well-being of MWAs is within MWAs
the surviving range of 6.0 to 8.0
points. Based on the profile, this
survey found that female MWAs
are in better financial shape with
an average score of 6.35 while
the males scored 6.05. The oldest
segment of MWAs, those in the
age group of 50-59, are in the
best financial position scoring
6.75 followed closely by the 40-
49 age group at 6.36. Those aged
20-39 (two age groups) are more
financially challenged, with both
scoring below total average.
Government employees have

better financial well-being
compared to those working in
the private sector or the self-
employed. MWAs with higher
job positions are in a better
state of financial well-being. The
same result is applicable to the
salary scale – the more you earn,
the stronger your financial well-
being.
Chart 16: Financial Well-being Score, Average Score of 6.21
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00
Male 6.05
Gender
Female 6.35
20 - 29 6.11
30 - 39 5.98
Age
40 - 49 6.36
50 - 59 6.75
No Dependants 6.27
No. of
1 to 5 6.18
dependants
6 or more 6.21
Private 6.09
Self-employed 5.82
Non-Executive 5.91
Executive 6.46
Designation
Manager 6.71
Senior Management 6.95
Less than 2000 5.46
2001 to 4000 5.94

Monthly 4001 to 6000 6.44
Income
(RM) 6001 to 8000 6.70
8001 to 10000 7.15
MWAs’ SCORES ON THE THREE score of 6.02, and ‘financial resilience’ has the
DIMENSIONS OF FINANCIAL WELL- lowest score. This shows that in describing
BEING the level of financial well-being, MWAs are
Based on the financial well-being framework characterised more by their ability to make
used in this survey, the results show that ends meet compared to being financially
MWAs scored highest in the ‘ability to make comfortable or resilient. This indicates the
ends meet’ at 6.79. ‘Feeling comfortable with need for intervention to address this gap in
current financial position’ registers a lower order to enhance their financial well-being.
Chart 17: Financial Well-being Score Based on Three Dimensions

6.79 6.02 5.92 6.21
Ability to make Feeling comfortable Financial Overall financial

ends meet with current financial resilience well-being
position
Diagram 2: Percentage of MWAs in Each Profiles Based on the Level of

Financial well-being
Under Need Surviving Comfortable Elated

pressure attention
Score 0 5 6 8 9 10
Gender
Male 24% 25% 38% 9% 4%
Female 19% 24% 41% 10% 7%
20 - 29 22% 26% 39% 8% 5%
30 - 39 25% 25% 38% 8% 4%

Age
40 - 49 19% 22% 40% 13% 6%
50 - 59 12% 23% 41% 14% 10%

Employment
Private 24% 25% 37% 9% 5%
Government 17% 22% 42% 11% 7%
Self-employed 28% 29% 34% 6% 3%
<4,000 29% 29% 34% 6% 2%

Monthly
Income
(RM)
4,000 - 8,000 15% 21% 46% 12% 7%
>8,000 8% 15% 41% 19% 17%

dependants
Dependants 19% 26% 40% 9% 6%

No of
No Dependants 22% 23% 39% 10% 5%
Whole sample 21% 24% 39% 10% 6%
Note: Average Score is 6.21

2.3 ABILITY TO MAKE ENDS to cover their daily needs (score 7.24) and
MEET most of them do not need to borrow to
buy basic needs (score 7.23). However, less
This survey shows that MWAs are generally are able to buy the things they want (score
in a financial situation where they are able 5.92).
Chart 18: Ability to Make Ends Meet
7.24 7.23 5.92
Financial position can No need to borrow Affordability

cover daily needs to buy basic needs to buy wants
The segments of MWAs who are most almost three out of ten or 28% need to
vulnerable in terms of financial well-being are borrow to buy essential goods. Half of this
the divorced, the self-employed, those working group have personal loans and 21% of them
in the army, police or enforcement sector, and borrow from non-bank institutions. More than
those earning less than RM2,000. The low one-third (33% and more) males, the self-
mean scores for these groups reveal that their employed, those earning less than RM2,000.
financial well-being may be compromised See Appendix 5 for full results.
and it is highly probable that they might not
be able to cover the expenses of their daily WANTS ARE OUT OF REACH FOR MANY
needs. See Appendix 5 for full results. Almost half of the respondents indicate
that they cannot afford to buy their
WHICH SEGMENTS NEED TO BORROW wants. Those who work in these three
TO BUY BASIC NEEDS? categories i.e. manufacturing, army, police &
Not being able to afford essential goods enforcement,and agriculture & commodity
and resorting to borrowing is quite prevalent are the most challenged in this regard. See
among MWAs. Of the respondents surveyed, Appendix 5 for full results.
Of the respondents
surveyed, almost three
out of ten or 28%
need to borrow to buy
essential goods
Among MWAs who need

to borrow to buy essential
goods, almost half (44%)
work in the army, police,
enforcement, agriculture
and commodity sectors
2.4 HOW COMFORTABLE comfort and having extra money at the end of
ARE MWAs ABOUT THEIR the month. Luxuries such as holidays costing
CURRENT FINANCIAL at least RM4,000 are not affordable to more
SITUATION? than half of MWAs. Being comfortable with
one’s financial position implies that there will
Of the five indicators used to measure be less stress over one’s financial matters.
‘financial comfort’, MWAs are more confident The findings of this survey (see Chart 19)
of achieving their long-term financial goals indicate that the more comfortable one is with
compared to achieving their short-term goals. his financial position, the better his financial
However, they are less confident of retiring in well-being.
Chart 19: Feeling Comfortable about Current Financial Situation
6.96 6.23 6.21 6.00 4.73
Confident to Confident to Financial position Have extra Financial position

achieve long-term achieve short-term can cover money at the enough to cover
financial goal financial goal basic needs for end of the holiday costs of
comfortable month RM4,000
retirement
FINANCIAL COMFORT AND INCOME Nonetheless, the difference in scores is

LEVEL narrower (between 5.21 for those who
The impact of income on financial comfort, earn less than RM2,000 and 6.93 for those
as expected, shows a positive relationship who earn more than RM10,000) to that of
between the two (see Chart 20). The survey percentage of savings (mean score of 8.5 for
shows that the higher the income, the more those who save more than 30% and 4.3 for
comfortable one is over his financial position. those who do not save at all).
Chart 20: Income vs Mean Score for Having Excess Money at the End of the Month
10
Mean (I have extra money at the end of the month),
Money at the End of the Month
Mean Score for Having Excess
overall at 6.00
8
6.46 6.93 6.93
6.29
5.57
6 5.21
0
Less than 2001 to 4001 to 6001 to 8001 to More than
2000 4000 6000 8000 10000 10000
Income Group
2.5 HOW FINANCIALLY the adequacy of their financial position to

RESILIENT ARE MWAs? cover an emergency expenditure of RM1,000,
medical costs of RM2,500 and expenses for
Financial resilience in the context of this three months if retrenched. Survey found that
survey describes the MWAs’ feelings about half of the MWAs are not financially resilient.
Chart 21: Level of Financial Resilience
6.50 5.90 5.37
Ability to pay RM1,000 Ability to pay Ability to cover 3

for emergency medical expenses months’ expenses
expenses of RM2,500 if retrenched
Of the three criteria, only about two in three Four to five out of 10 people in these
MWAs are able to fork out RM1,000 in case vulnerable groups cannot afford the RM1,000
of an emergency while 36% of the total emergency expenses (see Appendix 6 for
respondents are not able to do so. Less full results).
than six out of ten people can afford to pay
RM2,500 for medical costs, and slightly more
than half can cover three months of expenses 53% of MWAs
if retrenched. earning less than
ABILITY TO PAY RM1,000 IN CASE OF
RM2,000 cannot
AN EMERGENCY afford the RM1,000
Who are exposed to financial distress in times
of emergency? The profiles of MWAs who are
emergency expenses
most susceptible to being distress are:
• those who earn less than RM2,000 (53%)
• the divorcees (44%)
• the Self-employed (44%)
• MWAs working at the non-executive level
(43%)
• those aged between 30-39 years old
(41%)
Those Who Cannot Pay RM1,000 in Case of Emergency
53% 44% 44%
Income less than Divorcees Self-employed

RM2,000
43% 41%
Non-executive level Aged 30-39

ABILITY TO PAY RM2,500 MEDICAL • who work in the manufacturing sector (56);
EXPENSES AMONG MWAs • are self-employed (56%);
Who among the MWAs are unable to pay • who work at the non- executive level
RM2,500 for medical expenses? The survey (54%);
shows that he categories of people who are • who earn between RM2,000 – RM4,000
least able to cover the RM2,500 medical costs (52%);
are those: • are in the 30-39 age group (51%); and
• who earn less than RM2,000 (66%) • are in the 20-29 age group (49%)
• w h o w o r k i n t h e a r m y, p o l i c e o r
enforcement sector (57%); (See Appendix 6 for full results).
MWAs Who Cannot Pay for Medical Expenses of RM2,500
66% 57% 56% 54%
Income less than Employed in the army, police Self-employed Non-executive

RM2,000 or enforcement sector and level
manufacturing sectors
52% 51% 49%
Income between Aged 30-39 Aged 20-29

RM2,000 - RM4,000
Those who earn less than

RM2,000 and those who
work in the manufacturing,
army, police &
enforcement sectors are
the most challenged to
pay for medical expenses
of RM2,500 and more
ABILITY TO COVER THREE MONTHS’ • who work at the non- executive level (60%);
EXPENSES IF RETRENCHED • are in the 30-39 age group (60%); and
Who among the MWAs are able to cover • who earn between RM2,000 – RM4,000
three months’ expenses if retrenched? Not (59%);
many are able to do so. The profiles of • are in the 20-29 age group (58%)
people who are not able cover three months’
expenses if retrenched are those:  (See Appendix 6 for full results).
• who earn less than RM2,000 (70%)
• who work in the manufacturing, army,
police or enforcement sectors (61%);
MWAs Who Cannot Cover Three Months’ Expenses if Retrenched
70% 61% 60%
Income less than Employed in the army, police Non-executive level

RM2,000 or enforcement sector and
manufacturing sectors
60% 59% 58%
Aged 30-39 Income between Aged 20-29

RM2,000 - RM4,000
Those working in
the manufacturing
and the army, police
& enforcement
sectors are the least
able to cover three
months of expenses
if retrenched
PART 3
KEY TO
FINANCIAL
WELL-BEING
FINANCIAL KNOWLEDGE REMAINS Firstly, a positive relationship between

IMPORTANT financial knowledge and financial behaviour
has been established by the study. MWAs
What can be done to improve financial well- who have superior financial knowledge score
being? Does enhancing financial knowledge higher in the financial behaviour score; while
lead to better financial well-being? The those who score poorly in financial knowledge
findings of this study suggest that equipping are found to have lower financial behaviour
MWAs with financial knowledge or literacy is score (See Chart 22).
a good way to move forward.
Chart 22: Level of Financial Knowledge and Financial Behaviour Score

10
Financial Behaviour Score
7.46 7.47
8 7.17
6.31
6 5.70
0
Poor Below Reasonable Good Superior
Level of Financial Knowledge
Secondly, this study also shows a positive acquiring financial knowledge. Financial
relationship between the levels of financial education is thus a critical way forward to
knowledge and financial well-being (Chart enhance financial well-being.
23), further confirming the importance of
Chart 23: Level of Financial Knowledge and Financial Well-being Score

10
Financial Well-being Score
8 7.33
6.65
6.22
5.22 5.69
6
0
Poor Low Reasonable Good Superior
Level of Financial Knowledge

Thirdly, a positive relationship between being score is applicable for all income
financial behaviour and financial well-being range groups (Chart 25). Thus, promoting
(Chart 24) is also evidenced from the data. good financial behaviour is impactful for
What is most encouraging is that the study all income groups. And this, as explained
also found that the relationship between earlier, could be done by enhancing financial
the levels of behaviour and financial well- knowledge.
Chart 24: Level of Financial Behaviour and Financial Well-being Score

10
Financial Wel-being Score
7.62
8 7.19
6.23
6 5.26
4.46
0
Level of Financial Behaviour
Chart 25: Financial Behaviour and Financial Well-being Scores based on Income Range
10.00 More than RM10,000

RM8,001 - RM10,000
8.00 RM6,001 - RM8,000
Financial Wel-being Score
RM4,001 - RM6,000
RM2,001 - RM4,000
6.00 Less than RM2,000
4.00
2.00
0.00
Level of Financial Behaviour
In summary, to enhance financial well- enhance their efforts to promote positive

being, it is imperative that good financial financial behaviour. Given the state of
behaviour be inculcated among MWAs, financial well-being where there is much
and this could be done by enhancing room to improve, providing intervention
financial knowledge. With an improved programmes to enhance financial knowledge
understanding on what promotes financial and skills as well as instilling good financial
well-being, the relevant stakeholders can attitude among MWAs could be intensified.
3.6 FINANCIAL BEHAVIOUR refer to the level of financial well-being score

LEADS TO BETTER at 6.21 (refer Chart 16), in order to be within
FINANCIAL WELL-BEING the surviving level of financial well-being,
MWAs should save between 6% to 10%.
The 10-point financial well-being score However, if they want to be comfortable and
increases in tandem with the increase in elated with their financial situation (financial
percentage of salary saved by the MWAs. well-being score of more than 8.00), the
This study finds that the financial well-being savings ratio should be more than 30%. In
score of those without savings is 4.98; 5.85 for short, the more the MWAs save, the better
those who save between 1% to 5%; increasing their financial well-being score i.e they are
henceforth and peaking at 7.98 for those who more comfortable and financially resilient and
save more than 30% of their income. If we thus have greater ability to make ends meet.
Chart 26: Financial Well-being Score vs Percentage of Income Saved

10
Financial Well-being Score
7.98
8 7.12 7.07 7.05 7.06
6.27
5.85
6
4.98
0
No 1% to 6% to 11% to 16% to 21% to 26% to More
Savings 5% 10% 15% 20% 25% 30% than 30%
Percentage of Income Saved
Good saving habit

promotes financial
well-being
3.7 FINANCIAL GOALS

SHAPE FINANCIAL
BEHAVIOUR
Goals provide directions for planning Settling debt faster

is the Number 1
and action. Financial goals define what
one wants to achieve financially and can
be set by an individual, an organisation financial goal of
or other entities. In this survey, financial
goals include the goals to settle debt
MWAs
faster, to retire comfortably, to be ready for
emergencies, to buy a house, to prepare
for loss of job, to upskill, to get good
returns on investment, to purchase a car
and to go on a luxurious holiday.
The survey shows that the MWAs’ top

three financial goals are to settle their debt
faster, to retire comfortably and to be ready
for emergencies.
Following closely behind are the goals

of buying a house, preparing for job
loss, upskilling and getting a return on
investment. Purchasing a car or going on
a luxurious holiday are of lesser concern
for MWAs.
Table 5: Financial Goals by Rank

Financial Goals Rank (mean)
Settling Debt Faster 1 (8.24)
Retiring Comfortably 2 (8.23)
Being Ready for Emergencies 3 (7.93)
Buying a House 4 (7.87)
Preparing for Loss of Job 5 (7.50)
Upskilling 6 (7.39)
Return on Investment 7 (7.32)
Purchasing a Car 8 (6.94)
Luxurious Holiday 9 (5.83)
The goal of getting a good return on as those in the youngest age category are
investment increases in importance as one already placing it as one of their top three
ages, while the appetite to buy cars and priorities.
houses decreases. A late start into thinking
about returns on investment could be The interest to upskill generally decreases as
due to lack of capital when entering the one ages but peaks slightly for those aged
job market. For MWAs, owning a house is 40-49. The motivation to prepare for job loss
important and having this perspective starts decreases as those in the twenties get into
early on. The same goes for retirement their thirties, then picks up again as they enter
planning which enjoys a good head start their forties and fifties.
Chart 27: Financial Goals across Generations
10.00
9.50
9.00
8.50 Retire Comfortably

Settle Debt Faster
Financial Goal Score
8.00 Ready for Emergency
Prepare for Loss of Job

7.50 Return on Investment
Buy House
Upskill
7.00 Give Back
to Society
6.50 Purchase Car
6.00
Luxurious
5.50 Holiday
5.00
20-29 30-39 40-49 50-59
Age Group
FINANCIAL GOALS DIFFER decline in buying a house. This is due to the

ACCORDING TO INCOME LEVELS fact that getting ready for emergencies now
The financial goals pitted against levels of becomes equally important. For those who
income show minimal difference from their earn between RM6,001 to RM8,000 and those
results against age groups, perhaps due earning between RM8,001 to RM10,000,
to the positive relationship or covariance their top three financial goals are to retire
between age and income. Those earning comfortably, to settle debt faster and to get
less than RM2,000 list settling debt faster, ready for emergencies, with the lower income
buying a house and planning for retirement as category showing higher scores. Those
their top priorities. Those who earn between earning over RM10,000 also list the same
RM2,001 to RM4,000 also list settling debt three financial goals but with a surge of almost
faster, planning for retirement and buying 1 point in retiring comfortably while the other
a house as their top three financial goals two goals i.e. settling debt faster and getting
while the same applies to those who earn ready for emergencies are at a tie with returns
between RM4,001 to RM6,000 albeit the on investment.
Chart 28: Financial Goals vs Income Range

10.00
9.50
9.00
Retire Comfortably
8.50
Ready for Emergency
Settle Debt Faster
8.00
Return on Investment
7.50 Prepare for Loss of Job

Buy House
Give Back to Society
7.00 Upskill
6.50
Purchase Car
6.00
Luxurious
5.50
Holiday
5.00
Less than 2001 to 4001 to 6001 to 8001 to More than
2000 4000 6000 8000 10000 10000
Income Range
FINANCIAL GOALS DETERMINE emergencies. The financial goals of MWAs

SAVINGS HABITS who save between 26% to 30% of their
Those with different propensity to save differ income are interesting. This time buying a
in their financial goals. Those without any house suddenly peaks after declining steadily
savings prioritise settling debt faster, retiring and now ties with settling debt faster and
comfortably and buying a house, similar to retiring comfortably. For those who save
those who save between 1% to 5% of their more than 30% of their income, preparing
income. Those who save between 6% and for an emergency increases substantially to
25% (comprising 4 clusters of 6% to 10%, be number one on their list of financial goals,
11% to 15%, 16% to 20% and 21% to 25%) followed by retiring comfortably, settling
have similar goals i.e. settling debt faster, debts faster and interestingly, buying a house
retiring comfortably and getting ready for falls to fourth place on their priority list.
Chart 29: Financial Goals and Percentage of Income Saved

10.00
9.50
9.00
Ready for Emergency
Retire Comfortably
8.50
Settle Debt Faster
Buy House
Return on Investment
8.00
Prepare for Loss of Job
7.50
Purchase Car
7.00 Give Back to Society
6.50
6.00 Upskill
5.50
5.00
Luxurious
4.50 Holiday
4.00
No 1% to 6% to 11% to 16% to 21% to 26% to More
savings 5% 10% 15% 20% 25% 30% than 30%
Percentage of Income Saved
CONCLUSION
THE FINANCIAL WELL-BEING AMONG achieve their strong desire to escape the
MWAs IS AT A DISMAL LEVEL grips of indebtedness as evidenced from
The financial well-being of MWAs is in their concern about settling their debts as
a compromised position and warrants fast as they could. Facilitation, including
immediate attention. This is evidenced equipping MWAs with sound financial
from the survey which shows that a notable knowledge, must be intensified to fuel
number of MWAs are unable to make their aspiration to develop good financial
ends meet, uncomfortable with their habits as they are finding it so hard to save.
current financial situation and lack financial This is despite the fact that some MWAs
resilience. Many do not have money for do plan their spending budget and assess
emergency needs, medical expenses, and affordability before spending. Some of them
cannot cover three months’ expenses if are also prudent and do not buy on impulse;
retrenched. Almost 3 out of 10 MWAs need choose to pay debts if they have surplus
to borrow to buy essential goods which leads money; and start retirement planning early,
to high indebtedness. This problem needs to and consistently take this aspect of financial
be nipped in the bud. planning seriously. If left unattended, high
indebtedness will continue to plague us.
HIGH INDEBTEDNESS IS AN ISSUE THAT Concerted effort by various stakeholders to
EMPLOYERS NEED TO GRAPPLE WITH address the issue would be more impactful.
High indebtedness persists despite rigorous For example, employers could explore
efforts to enhance financial literacy. plausible solutions to solve the challenge
Intervention is needed to help MWAs of high indebtedness among MWAs.
ENHANCE FINANCIAL KNOWLEDGE FOR A M U LT I - FA C E T E D A P P R O A C H T O

BETTER FINANCIAL WELL-BEING I N C U L C AT E G O O D F I N A N C I A L
Solutions to lower the level of indebtedness BEHAVIOUR AND ENHANCE FINANCIAL
among MWAs must be sought. The reason KNOWLEDGE IS NEEDED
as to why and how the high cost of living and To encourage MWAs who are in better
having no income surplus cause indebtedness financial health such as females, those who
must be established so that effective policies are above 50 years of age, singles, those
can be introduced. The situations where with higher income and designation, and
MWAs have to borrow to buy essential goods, all those who score the highest mean scores
are still financing housing and car loans close for their respective profile categories, an
to or post-retirement, are unable to pay loans infrastructure to continuously enhance
on time, and having to resort to taking credit financial knowledge must be developed.
card loans need to be looked into. There is Over the long run, serious efforts to improve
hope, however, as the study also established the financial well-being among Malaysians
that the lower income earners who have is anticipated to have a positive impact
good financial behaviour enjoy good on our society. A multi-faceted approach
financial well-being. Coupled with sound to inculcate good financial behaviour and
financial knowledge, we can set practical and enhance financial knowledge must be taken
clear financial goals which subsequently leads in order to move more MWAs into the
to better financial well-being. elated level of financial well-being.
APPENDICES
Appendix 1: ANOVA Table (Significant Value)

Financial Behaviour Financial Well-being
with Current Financial

Ability to Make Ends
Feeling Comfortable
Demographic
Savings, Retirement
Financial Resilience
Debt Management
and Investment
Spending
Position
Overall
Overall
Meet
Gender 0.07 0.00 0.45 0.00 0.00 0.00 0.00 0.02
Age 0.00 0.02 0.00 0.41 0.00 0.50 0.00 0.00
Ethnicity 0.35 0.00 0.05 0.00 0.03 0.07 0.01 0.00
Marital Status 0.10 0.05 0.22 0.42 0.05 0.03 0.22 0.14
Employment Type 0.00 0.00 0.03 0.00 0.00 0.00 0.00 0.00
Type of Industry 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Designation 0.01 0.13 0.00 0.00 0.00 0.00 0.00 0.00
Highest
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Qualification
Income range 0.00 0.12 0.00 0.00 0.00 0.00 0.00 0.00
Number of
0.01 0.00 0.23 0.13 0.11 0.09 0.36 0.13
Dependants
Note: The mean difference is significant at the 0.05 level.
Appendix 2: Spending
normally spend on things which

I spend my money according to
I prepare a spending budget
When I have excess money, I

normally spend on essential
very carefully before buying
I record all my spending
I assess my affordability
something
I want
items
plan

Whole Sample 6.31 6.92 7.8 7.41 7.61 5.27
Male 6.08 6.79 7.75 7.37 7.58 5.31
Gender
Female 6.52 7.04 7.84 7.46 7.63 5.23
20-29 6.33 6.96 7.85 7.50 7.65 4.96
30-39 6.27 6.89 7.69 7.29 7.55 5.25
Age
40-49 6.26 6.88 7.87 7.40 7.60 5.44
50-59 6.50 7.00 7.92 7.69 7.73 5.48
Malay/Bumiputera 6.39 7.05 7.83 7.45 7.68 5.34
Chinese 5.93 6.44 7.64 7.14 7.49 4.97
Ethnic
Indian 6.32 6.90 7.95 7.73 7.29 5.27
Others 6.73 7.01 7.78 7.47 7.55 5.38
Single 6.23 6.79 7.78 7.42 7.49 4.98
Marital
Married 6.33 6.95 7.82 7.42 7.64 5.35
Status
Divorce 6.65 7.13 7.43 7.30 7.64 5.51
No Dependants 6.20 6.81 7.73 7.35 7.41 5.06
1 6.40 6.89 7.63 7.32 7.61 5.15
2 6.27 7.03 7.91 7.52 7.78 5.24
Number of
3 6.41 6.95 7.78 7.46 7.66 5.28
Dependants
4 6.37 7.00 7.98 7.40 7.69 5.71
5 6.36 6.85 7.82 7.41 7.76 5.42
6 or more 6.56 7.09 7.83 7.59 7.78 5.80
Private 6.16 6.73 7.71 7.27 7.57 5.19
Employment Government 6.46 7.12 7.95 7.57 7.67 5.32
Self-employed 6.34 6.84 7.49 7.34 7.49 5.44
normally spend on things which

I spend my money according to
I prepare a spending budget

normally spend on essential
very carefully before buying
I record all my spending
I assess my affordability
something
I want
items
plan

Finance/
6.36 7.01 8.13 7.63 7.64 5.02
Accounting
Manufacturing 5.95 6.36 7.14 6.98 7.38 5.40
Education 6.32 6.94 7.77 7.38 7.74 5.13
Engineering 6.26 6.79 7.76 7.27 7.70 5.39
Health 6.45 7.19 7.86 7.55 7.68 5.42
Type of Army/Police/
Industry 6.20 6.89 7.44 7.22 7.49 5.24
Enforcement
Agriculture &
6.23 6.77 7.71 7.50 7.74 4.96
Commodity
Property &
6.49 7.33 8.00 7.48 7.56 5.28
Township
Services 6.36 6.98 7.98 7.51 7.64 5.47
Others 6.27 6.66 7.43 7.24 7.34 5.38
Non-Executive 6.40 7.04 7.78 7.49 7.62 5.33
Executive 6.27 6.81 7.89 7.39 7.67 5.13
Designation Manager 6.07 6.76 7.76 7.30 7.54 5.26
Senior
6.55 7.02 7.87 7.60 7.75 5.26
Management
Less than 2000 6.19 6.86 7.66 7.40 7.55 5.33
2001 to 4000 6.43 6.92 7.76 7.39 7.52 5.21
Monthly 4001 to 6000 6.40 7.08 7.86 7.49 7.66 5.22

Income 6001 to 8000 6.29 6.86 7.92 7.42 7.80 5.29
8001 to 10000 6.00 6.60 7.81 7.26 7.70 5.35
More than 10000 5.97 6.65 7.93 7.35 7.49 5.57
Central Region 6.20 6.82 7.86 7.36 7.55 5.25
East Coast Region 6.09 6.80 7.64 7.32 7.71 5.19
Region Northern Region 6.29 6.95 7.90 7.51 7.66 5.28
Southern Region 6.55 6.98 7.63 7.43 7.47 5.49
East Malaysia 6.60 7.16 7.86 7.48 7.74 5.11
Appendix 3: Save, Retirement and Investment
I invest in legal investment
money, I normally invest in

money, I normally save for
money, I normally save

(other than retirement)
I plan my finances for
investment/business
When I have excess
When I have excess
When I have excess

I save first before
retirement
retirement
spending

Whole Sample 7.11 7.13 6.88 7.17 7.44 5.91
Male 6.96 7.09 6.96 7.06 7.30 6.14
Gender
Female 7.25 7.17 6.80 7.26 7.57 5.69
20-29 7.30 6.97 6.33 7.00 7.51 5.86
30-39 6.96 6.88 6.69 6.91 7.30 5.78
Age
40-49 7.09 7.30 7.27 7.32 7.50 5.94
50-59 7.31 7.79 7.51 7.89 7.64 6.30
Malay/Bumiputera 7.18 7.18 6.84 7.18 7.43 5.92
Chinese 7.01 7.06 7.11 7.26 7.52 6.17
Ethnic
Indian 7.06 6.97 6.61 6.85 7.27 5.41
Others 6.68 7.05 6.93 7.10 7.50 5.54
Single 7.22 6.97 6.66 6.96 7.45 5.82
Marital Status Married 7.09 7.18 6.95 7.22 7.43 5.93
Divorce 6.75 7.25 6.59 7.50 7.49 5.97
No Dependants 7.20 7.02 6.73 7.06 7.46 5.86
1 6.91 7.04 6.78 6.91 7.22 5.87
2 7.29 7.25 7.10 7.37 7.57 5.81
Number of
3 7.04 7.17 6.75 7.11 7.41 5.85
Dependants
4 7.09 7.29 7.02 7.24 7.33 6.09
5 6.83 7.26 7.07 7.42 7.49 6.13
6 or more 6.91 7.06 6.98 7.28 7.51 6.07
Private 6.97 7.03 6.93 7.09 7.37 5.90
Employment Government 7.29 7.29 6.89 7.25 7.57 5.84
Self-employed 6.91 6.86 6.53 7.15 7.08 6.29
I invest in legal investment
money, I normally invest in

money, I normally save for
money, I normally save

(other than retirement)
I plan my finances for
investment/business
When I have excess
When I have excess
When I have excess

I save first before
retirement
retirement
spending

Finance/Accounting 7.37 7.42 7.56 7.48 7.70 6.27
Manufacturing 6.33 6.42 6.30 6.92 7.18 5.78
Education 7.08 7.08 6.77 7.10 7.44 5.74
Engineering 7.13 7.13 6.80 7.08 7.38 6.01
Health 7.29 7.27 6.61 7.41 7.53 5.78
Army/Police/
Type of Industry Enforcement 7.22 7.14 6.23 7.30 7.38 5.61
Agriculture &
7.29 7.10 7.43 7.09 7.31 6.12
Commodity
Property & Township 7.16 7.39 6.78 7.06 7.38 5.69
Services 7.30 7.24 7.04 7.15 7.53 5.88
Others 6.57 6.73 6.39 6.86 7.07 5.87
Non-Executive 7.02 7.05 6.49 7.16 7.38 5.79

Executive 7.20 7.17 7.17 7.14 7.58 5.89
Designation
Manager 7.18 7.44 7.61 7.19 7.38 6.39
Senior Management 7.39 7.48 7.52 7.51 7.63 6.31
Less than 2000 6.82 6.75 5.92 6.96 7.13 5.61
2001 to 4000 7.04 6.94 6.56 7.05 7.47 5.73
4001 to 6000 7.22 7.30 7.25 7.22 7.48 6.04
Monthly Income
6001 to 8000 7.24 7.44 7.59 7.39 7.60 6.26
8001 to 10000 7.41 7.66 7.68 7.47 7.61 6.10
More than 10000 7.36 7.59 7.96 7.54 7.59 6.41
Central Region 7.22 7.22 7.19 7.09 7.43 5.96
East Coast Region 7.04 7.00 6.49 7.05 7.25 6.09
Region Northern Region 7.07 7.04 6.73 7.15 7.40 5.79
Southern Region 7.07 7.06 6.69 7.33 7.53 5.86
East Malaysia 6.99 7.26 6.90 7.31 7.61 5.78
Appendix 4: Debt Management
normally pay my
excess money, I
payment) of my
instalments on
I ALWAYS pay
5% (minimum
I pay my loan
When I have
credit card
more than
debts
time
Whole Sample 7.85 6.82 7.69
Male 7.68 6.54 7.69
Gender
Female 8.01 7.09 7.70
20-29 7.69 6.83 7.58
30-39 7.81 6.88 7.69
Age
40-49 7.95 6.81 7.68
50-59 8.01 6.66 7.88
Malay/Bumiputera 7.79 6.65 7.79
Chinese 8.10 7.47 7.51
Ethnic
Indian 7.73 6.85 7.45
Others 7.83 6.61 7.51
Single 7.81 7.02 7.56
Marital Status Married 7.86 6.78 7.74
Divorce 7.72 6.43 7.59
No Dependants 7.75 6.88 7.54
1 8.09 7.06 7.58
2 8.17 7.03 7.85
Number of
3 7.65 6.68 7.74
Dependants
4 7.78 6.58 7.78
5 7.71 6.40 7.82
6 or more 7.82 6.82 7.92
Private 7.87 6.86 7.62
Employment Government 8.03 6.87 7.79
Self-employed 6.76 6.38 7.57
normally pay my
excess money, I
payment) of my
instalments on
I ALWAYS pay
5% (minimum
I pay my loan
When I have
credit card
more than
debts
time
Finance/Accounting 8.39 7.32 7.73
Manufacturing 7.44 6.59 7.35
Education 7.82 6.97 7.77
Engineering 7.90 6.63 7.91
Health 7.86 6.84 7.74
Type of Industry
Army/Police/Enforcement 7.59 6.27 7.74
Agriculture & Commodity 7.75 6.17 7.67
Property & Township 8.10 6.83 7.53
Services 7.94 6.89 7.83
Others 7.08 6.38 7.35
Non-Executive 7.67 6.68 7.69
Executive 8.15 6.94 7.72
Designation
Manager 8.11 7.11 7.68
Senior Management 8.16 7.22 7.98
Less than 2000 7.17 6.72 7.51
2001 to 4000 7.83 6.73 7.65
4001 to 6000 8.01 6.66 7.74
Monthly Income
6001 to 8000 8.21 6.98 7.90
8001 to 10000 8.09 7.41 7.71
More than 10000 8.62 7.67 7.95
Central Region 8.11 7.04 7.65
East Coast Region 7.48 6.81 7.64
Region Northern Region 7.78 6.70 7.78
Southern Region 7.67 6.80 7.62
East Malaysia 7.87 6.48 7.84
Appendix 5: Ability to Make Ends Meet
(Negative Statement),
% scored more than 5

(Negative statement),
My financial positions
Cannot Afford Wants

can cover my daily
essential goods
Borrow to buy
needs

Male 75% 34% 48%

Gender
Female 79% 23% 38%
20-29 76% 28% 42%
30-39 74% 26% 43%
Age
40-49 79% 30% 43%
50-59 83% 30% 42%
Malay/Bumiputera 78% 29% 45%
Chinese 78% 28% 39%
Ethnic
Indian 69% 29% 36%
Others 74% 19% 36%
Single 78% 27% 40%
Marital Status Married 77% 29% 43%
Divorced 69% 31% 45%
No Dependants 77% 27% 41%
1 78% 26% 44%
2 76% 29% 39%
Number of Dependants 3 76% 30% 45%
4 77% 30% 46%
5 79% 32% 46%
6 or more 77% 28% 44%
Private 75% 29% 44%
Employment Government 81% 27% 40%
Self-employed 67% 35% 47%
(Negative Statement),

(Negative statement),
My financial positions
Cannot Afford Wants

can cover my daily
essential goods
Borrow to buy
needs

Finance/Accounting 84% 26% 43%

Manufacturing 70% 30% 50%
Education 77% 29% 41%
Engineering 77% 27% 43%
Health 78% 26% 34%
Type of Industry Army/Police/

69% 44% 56%
Enforcement
Agriculture &
85% 40% 54%
Commodity
Property & Township 78% 26% 43%
Services 80% 24% 39%
Others 65% 32% 44%
Non-Executive 71% 31% 46%
Executive 84% 24% 40%
Designation
Manager 83% 28% 38%
Senior Management 81% 26% 39%
Less than 2000 63% 33% 49%
2001 to 4000 73% 30% 45%
4001 to 6000 83% 27% 41%
Monthly Income
6001 to 8000 86% 26% 37%
8001 to 10000 86% 19% 34%
More than 10000 89% 25% 33%
Central Region 81% 24% 42%
East Coast Region 73% 30% 44%
Region East Malaysia 75% 34% 39%
Northern Region 75% 33% 48%
Southern Region 76% 26% 40%
Appendix 6: Financial Resilience
Ability to pay RM1,000
Ability to pay medical
retrenched, % scored
months’ expenses if
scored more than 5
bills of RM2,500, %
Ability to cover 3
for emergency,
more than 5

Male 62% 53% 47%

Gender
Female 67% 55% 46%
20-29 62% 51% 42%
30-39 59% 49% 40%
Age
40-49 70% 60% 51%
50-59 74% 64% 63%
Malay/Bumiputera 64% 54% 46%
Chinese 68% 59% 50%
Ethnic
Indian 66% 56% 43%
Others 52% 43% 42%
Single 64% 55% 49%
Marital Status Married 65% 54% 46%
Divorced 56% 57% 44%
No Dependant 65% 53% 48%
1 68% 55% 45%
2 62% 56% 46%
Number of
3 62% 54% 45%
Dependant
4 62% 53% 44%
5 67% 54% 49%
6 or more 68% 59% 48%
Private 61% 54% 46%
Employment Government 69% 57% 49%
Self-employed 56% 44% 38%
Ability to pay RM1,000
Ability to pay medical
retrenched, % scored
months’ expenses if
scored more than 5
bills of RM2,500, %
Ability to cover 3
for emergency,
more than 5

Finance/Accounting 75% 68% 57%

Manufacturing 54% 44% 39%
Education 68% 55% 49%
Engineering 62% 54% 46%
Health 67% 55% 43%
Type of Industry
Army/Police/Enforcement 52% 43% 39%
Agriculture & Commodity 73% 65% 67%
Property & Township 64% 58% 46%
Services 66% 54% 45%
Others 49% 39% 34%
Non-Executive 57% 46% 40%
Executive 72% 62% 51%
Designation
Manager 75% 67% 61%
Senior Management 81% 71% 57%
Less than 2000 47% 34% 30%
2001 to 4000 58% 48% 41%
4001 to 6000 71% 61% 50%
Monthly Income
6001 to 8000 75% 66% 61%
8001 to 10000 83% 80% 69%
More than 10000 87% 78% 68%
Central Region 70% 60% 51%
East Coast Region 61% 47% 40%
Region East Malaysia 57% 50% 45%
Northern Region 62% 53% 43%
Southern Region 64% 53% 48%
REFERENCES
ANZ Banking Group Limited (2018). Financial Wellbeing, a Survey of Adult in New Zealand
Consumer Financial Protection Bureau (cfpb) (2017). Financial well-being in America
Organisation for Economic Co-operation and Development, (2016). OECD/INFE International

Survey of Adult Financial Literacy Competencies
Asian Institute of Finance (2015). Finance Matters. Understanding Gen Y. Bridging the
Knowledge Gap of Malaysia’s Millennial
THE TEAM
Patrons
Puan Nor Fazleen Zakaria, General Manager Operations
Puan Nor Akmar Yaakub, Head of Financial Education Department
Advisors:
Professor Dr Zainuddin Awang, Universiti Sultan Zainal Abidin (UniSZA)
Associate Professor Dr Cordelia Mason (Co-Author), Universiti Kuala Lumpur (UniKL)
Associate Professor Dr Hawati Janor, Universiti Kebangsaan Malaysia (UKM)
Associate Professor Dr Mohamad Fazli Sabri, Universiti Putra Malaysia (UPM)
Assistant Professor Dr Maya Puspa Rahman, International Islamic University Malaysia (IIUM)
Associate Professor Dr Vinitha Guptan, Saito University College
Principal Researcher/Project Manager

Mohammad Mafrukhin Mokhtar
Head of Research Unit, Financial Education Department
Research Assistants
Mohd Azril Khairul Anuar
Ikhwan Haziq Aminudin
Siti Najihah Mohamed Azlan
Financial Education Department Staff (2018)
For enquiries, please contact:

50250 Kuala Lumpur
Tel: 03 2616 7766
Email: research@akpk.org.my
50250 Kuala Lumpur
ISBN 978-983-44004-9-1
9 789834 400491

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Financial Behaviour and

State of Financial Well-being

AKPK Financial Behaviour Survey 2018 (AFBeS’18)

AKPK Financial Behaviour Survey 2018 (AFBeS’18)

No part of this publication may be reproduced, stored in a retrieval system or transmitted

For enquiries, please contact:

10 About the Respondents

13 Part 1 - Financial Behaviour

33 Part 2 - Financial Well-being

45 Part 3 - Key to Financial Well-being

Financial behaviour influences

Having clear financial goals

Financial education plays a big role

Weak Low Reasonable Good Exemplary

Percentage 6% 18% 52% 19% 5%

Reasonable Financial Behaviour score of 7.02 among

The self-employed score the lowest on the financial

2 out 10 MWAs (18%) have no savings in the previous

High cost of living is the main reason why many

Government employees form the highest percentage of

More than half of those about to retire are still

Settling debt faster is the number one financial goal

Under Pressure Need Attention Surviving Comfortable Elated

Percentage 21% 24% 39% 10% 6%

The average financial well-being score is at the low edge

The self-employed are most vulnerable as they are

Employees who are working in the agriculture, army,

Almost 3 out of 10 (28%) need to borrow to buy

More than half (53%) of those earn less than RM2,000

ABOUT THE RESPONDENTS

Female 20-29 30-39 40-49 50-60

Malay/Bumiputera Chinese Indian Others

Primary School Secondary School Diploma

First Degree Master’s Degree/PhD Professional

Self-employed Private Government

Less than RM2,001 to RM4,001 to RM6,001 to RM8,001 to More than

MEASUREMENT OF FINANCIAL BEHAVIOUR

Table 1: Areas of Financial Behaviour

Chart 1: Level of Financial Behaviour among MWAs

Spending Savings, Retirement Debt Management Overall Financial

Diagram 1: Percentage of MWAs in Each Profiles Based on the Level of

Weak Low Reasonable Good Examplary

Male 7% 19% 51% 18% 5%

Female 5% 17% 54% 19% 5%

20 - 29 7% 19% 51% 18% 5%

30 - 39 6% 19% 52% 18% 5%

40 - 49 4% 17% 55% 19% 5%

50 - 59 4% 15% 50% 23% 7%

Private 6% 20% 52% 17% 5%

Government 4% 17% 53% 20% 6%

Self-employed 11% 18% 47% 21% 3%

<4,000 7% 21% 50% 17% 5%

4,000 - 8,000 4% 16% 54% 21% 5%

>8,000 5% 12% 54% 21% 8%

Dependants 6% 19% 51% 20% 4%

No Dependants 5% 17% 53% 19% 6%

Whole sample 5% 18% 52% 19% 5%

Note: Average Score is 7.02

The group earning between RM4,001 to

Chart 2: Preparing a Spending Budget, Average Score of 6.92

6.20 6.40 6.60 6.80 7.00 7.20

No. of No Dependants 6.81

Employment Government 7.12