KUALA LUMPUR (June 20): The biggest financial fear among those in Generation Z in Malaysia, or Gen Zs, who were born between 1997 to 2013, is not having enough savings, according to a 2023 survey by insurance and takaful group Etiqa.
It is the concern of most respondents polled, with 64% of them highlighting that insufficient emergency funds and difficulties in savings were among their top concerns, followed by having poor credit scores (48% polled), and being unable to afford healthcare or medical expenses (31%).
In a statement, Etiqa said these concerns were partly fuelled by the rise in living expenses and economic shifts, which is prompting Gen Zs — the latest generation of adults entering the workforce — to reconsider their approach to saving and investing. Gen Zs now constitute 30% of the world’s population and are expected to reach 27% of the world’s workforce in 2025, it noted.
In fact, 95% of the Malaysian respondents in the survey, which was conducted over several months in both Singapore and Malaysia and polled 1,828 Gen Zs and millennials in Malaysia and Singapore, acknowledged that the prevailing economic conditions and interest rate environment had influenced their saving behaviours and shaped their decisions regarding asset ownership and financial goals. The figure stood at 90% among the Singaporean respondents.
And 33% of Malaysian respondents said it was more challenging to save now, while 35% indicated they had postponed major purchases such as properties and cars. In Singapore, those who agree that it is more challenging to save now reached 42%, while 24% had postponed major purchases; 41% said these conditions had increased their financial stress.
"To counter these concerns, Malaysian Gen Zs have tightened their belts with 55% stating that they ate out less and cooked more at home while 33% aimed to generate more income via investment," Etiqa said.
They also made purchases with coupons (36% of survey participants), spent less on branded goods (39%) and generated a second income (35%).
A financially savvy generation
According to Etiqa's survey, 45% of Malaysian Gen Zs are confident of managing their own finances, the same as in Singapore.
Many have also sought financial education through various means, Etiqa noted. In line with the preference towards visual and online sources, some of the preferred means of obtaining financial education among the Gen Zs are online influencers or 'fin-fluencers' who make personal finance accessible, understandable, and even entertaining, Etiqa said.
"Another interesting finding from the survey was that Gen Zs in Malaysia are favouring investments in a wide range of products including insurance, gold/precious metals, and mutual funds. Specifically, 33% of Gen Z individuals are investing in insurance, 31% in precious metals, and 27% in mutual funds and bonds. And this interest was not constrained to only a small subset of the demographic with 65% of Malaysian Gen Z individuals engaging in investing and saving practices," Etiqa noted.
Those statistics also apply to Singaporean Gen Zs, with 74% of those polled in Singapore investing. "Among those who do invest, Singaporean Gen Zs demonstrated a higher level of risk appetite with 57% looking to invest in stocks or exchange-traded funds (ETFs) versus only 19% in Malaysia. Only 19% of Singaporean Gen Zs were investing in less volatile mutual funds versus the 27% in Malaysia," Etiqa said.
"Surveys in Singapore and Malaysia show a financially savvy generation actively reshaping savings and investment strategies, relying [on] guidance from online influencers. Malaysian Gen Zs favour liquid products like insurance, while confidence levels vary among Singaporeans," according to Etiqa Insurance and Takaful's group chief executive officer Kamaludin Ahmad.
Meanwhile, most Malaysian Gen Zs (73%) indicate that buying a property or a car are among their top three priorities in the next 12 months, followed by travel (50%), and self-pampering goals such as personal hobbies (36%).
In contrast, their counterparts in Singapore prioritise travelling the most (52%), followed by investing (49%), and buying properties and a car (30%) as their top three spending priorities over the next 12 months.