KUALA LUMPUR – A Standard Chartered survey finds that COVID-19 is significantly impacting personal finances globally, with one-third (29%) in Malaysia already earning less and more than half expecting the pandemic to further affect their income and/or employment. Yet, most Malaysians are confident in their skills and prepared to adapt and work harder to realise opportunities in a post-COVID-19 world.
The study of 12,000 adults across twelve markets – Hong Kong, Taiwan, Mainland China, Singapore, Indonesia, Malaysia, India, UAE, Kenya, Pakistan, the UK and the US – offers insights into their financial wellbeing and employment outlook in these challenging times, and how banks can play a role in helping them manage their money.
It reveals a stark contrast between the financial reality that people face and their confidence in the future. This can be explained by a willingness – particularly among young people and those in emerging markets – to work harder, take steps to adapt income streams and reskill if they can, in order to earn more.
Globally, young people are particularly confident, with 80% of 18 to 34-year olds feeling they have the digital skills needed to thrive post-COVID-19. However, Malaysians of all ages are highly confident in their skills, with those aged 55 to 64 feeling most equipped (93%) compared to 77% of those aged 18 to 34.
Yet, with many graduating or leaving school in the midst of a global recession, younger generations are more willing, or able, to adapt to the current circumstances. 79% of 25 to 34-year olds in Malaysia would set up a second income stream compared to 69% of those over 55; and 77% of 18 to 44-year olds would reskill compared to 63% of those aged 55 and above.
Millennials and Generation Z are also more likely to respond to the crisis by starting a new business. 62% of Malaysians aged 18 to 44 would consider doing so in the next six months compared to 44% of those aged 45 and above.
Around the world, the level of flexibility, adaptability and entrepreneurialism tends to decrease with age, along with confidence, despite – or perhaps because – older generations are more established in their careers.
The divide is even more stark when comparing developed and developing markets. Those in established global economies are not only less confident they have the digital skills needed to thrive amidst the downturn, they are also less willing to adapt and take steps to increase their income.
Over three quarters of Malaysians (78%) would prefer to work more to get ahead than reduce their hours for less pay. In terms of wanting to better manage personal finances, Malaysia (83%) reports one of the highest portion of people who want to better manage their money to make it go further.
And while the pandemic has acted as a catalyst for the growth of online banking, with over half globally using online services more, the shift has been more apparent in fast-growing markets. For example, the increase in the use of mobile devices for banking services in Malaysia is 66%.
Fast-growth markets are also more likely to want their banks to help improve their confidence at managing money digitally as they increasingly look to bank online with 73% in Malaysia agreeing this would be helpful.
There is one clear area of almost unanimous agreement; a global desire for more flexibility when it comes to working arrangements post-COVID-19. For those for whom it is applicable, 75% of Malaysians (71% globally) would prefer to continue working from home for at least two days a week once restrictions are lifted and 83% want more flexible working arrangements (77% globally).
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