20% of Working Malaysians Can't Afford To Save A Single Cent, Survey Says
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According to a survey conducted by the Credit Counselling and Debt Management Agency (AKPK), 2 out of 10 Malaysian working adults were unable to save a single sen in the last 6 months.
But that’s not all, it appears that nearly 3 out of 10 had to borrow money just to buy essential items. In the survey that was conducted from May to August 2018, AKPK surveyed 3,540 people between the ages 20 and 60.
More than half, or 53% of those polled, earned less than RM2,000. They could not even afford RM1,000 emergency expenses. The survey also found that a high cost of living was the main reason why many working Malaysians were unable to save.
AKPK chief executive Azaddin Ngah Tasir said that according to the survey on financial wellbeing, they found that on average, the Malaysian working adult has not reached the comfortable level of wellbeing.
AKPK’s research also showed that another 2 out of 10 working malaysians saved less than 5% of their monthly income.
The research survey focused on two groups: the self employed and those earning below RM2,000 monthly.
According to AKPK, these two groups are the most vulnerable. This is because they are the most challenged groups in terms of financial wellbeing.
Those who work in the agriculture sector, armed forces, police and other law enforcement agencies were among those who scored the lowest in its financial security checks.
They managed to save a minimal level of 5%-10% of their monthly income.
The AKPK chief executive said that consumers who do not understand their personal finances and exhibited inappropriate financial behaviour would continue to suffer financially in the future.
He emphasised that financial education is important in producing good financial behaviour. Therefore, Malaysians need to understand the current situation of consumer’s erratic financial behaviour.
The survey report was launched today by Deputy Prime Minister Datuk Seri Wan Azizah Wan Ismail during AKPK's inaugrural Financial Literary Symposium 2018.