THE number of Malaysians who are unable to save money each month has increased by two percentage points to 21% this year from 19% last year, revealed the RinggitPlus Malaysian Financial Literacy Survey 2021.

RinggitPlus co-founder and director Hann Liew said the credit crunch situation is due to the current pandemic and economic situation.

“A total of 21% of Malaysians told us they cannot save a single cent each month, an increase from 19% last year.

“As many as 56% of respondents are able to save less than RM500 or none at all each month this year, versus 49% last year. And 15% of respondents are able to save more than RM1,500 each month, versus 20% last year.

“In summary, saving has been more difficult than ever before, and we can tie this to the pandemic and economic situation.”

The survey involved 3,000 respondents across all income groups in Malaysia.

Hann said the survey also recorded a huge percentage drop in the number of people who believe that their Employees Provident Fund (EPF) savings are enough for retirement.

“A total of 15% of respondents said they believe that their EPF savings are enough for retirement this year, versus 30% last year – a significant dip.

“A total of 85% of respondents think their EPF savings alone may not be sufficient for retirement, and almost 45% said they have not started any retirement planning – this is a worrying metric.

“Similar to last year, the differences are far bigger than we expected.”

The survey also revealed that 52% of respondents cannot survive more than three months if they lose their job, while 44% spend exactly or more than what they earn, and 76% believe they are in control of their money.

“This year, building an emergency fund is the top reason why Malaysians saved money,” Hann said, adding that the pandemic has been and remains a huge wake-up call to Malaysians, who previously had poor financial habits around saving and spending. – Bernama, October 13, 2021.