KUALA LUMPUR (Dec 6): Seven in 10 Malaysians save less than RM500 per month, leaving them vulnerable to financial shocks, said RinggitPlus.com.

At the other end of the spectrum, the percentage of Malaysians who manage to save more than RM1,500 a month has also dropped significantly, from 20% in 2020 to 5% in 2022, the financial comparison website said in a statement.

Citing the findings of the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2022, the statement said: “70% of respondents indicated that they save less than RM500 a month or do not manage to save at all. This is the worst-ever result tracked by RMFLS in five years”.

“The financial effects of the pandemic have been devastating and our survey findings this year reaffirm that Malaysians have real financial challenges to address,” said RinggitPlus co-founder and director Hann Liew.

“It is a harsh reality not only for the rakyat, but also for policymakers and industry players — this is a generational issue that requires long-term solutions with sustained and concerted support from all parties,” he said.

The nationwide survey was conducted using a self-administered online questionnaire through a third-party analytics platform, based on a sampling of 3,144 Malaysians aged 18 and above.

RinggitPlus said the 2022 survey results also indicate that more Malaysians are struggling with less savings in hand, as 63% of respondents stated that they can survive for three months or less with only their savings, compared with 52% last year.

“A similar pattern is also seen whereby 55% of Malaysians spent exactly or more than what they earned each month (44% last year), essentially living paycheque-to-paycheque," said RinggtPlus.

With depleting savings and higher cost of goods, the survey also highlighted a worrying trend, where more credit cardholders are not paying off their bills in full — just 55% in 2022 compared to 70% last year.

“With the challenges in cashflow and savings, the survey shows that Malaysians are choosing short-term monetary relief over long-term financial stability. A staggering 66% of respondents above 21 stated that they will consider applying for more Employees’ Provident Fund (EPF) withdrawals, if the government allows it,” said RinggitPlus.

In addition, the survey also found that 52% of Malaysians above the age of 18 have not started investing.

Meanwhile, a majority of those who are investing have low-risk appetites but medium-term investment horizons which is not optimal — though these may be influenced by current financial challenges and the global economic outlook, noted RinggitPlus.