KUALA LUMPUR – The Securities Commission Malaysia (SC) reports an alarming low level of participation among the Malaysian youth in the capital markets.
In a recently released report, the SC found out through the Youth Capital Market Survey 2022, conducted recently, that a majority of Malaysian youths spend their income on food, household expenses as well as debt repayment.
The survey also showed that these youths’ spending habits are leaving them with little money left over for savings or investments.
The SC notes that survey respondents place a high priority towards setting aside a portion of their income for emergencies and expenses for their children and families. However, these youths also face pressure to maintain a certain appearance and it is visible across the respondent segments.
The controlling of their spending, such as through imposing limits on eating out, shopping and travelling, gives the youths an impression that they are unable to enjoy the fruits of their labour, the SC explained.
Additionally, the report also showed that the other factors contributing to their lack of participation in the capital market is due to their low awareness of the products being offered on the market.
This is compared to the non-capital market products like insurance, Tabung Haji, and fixed deposits, all which the youth are more aware of.
According to the SC, only 3% of the respondents deemed themselves to have a high-risk appetite for investment portfolios while the remaining 97% felt more comfortable within the medium to low risk range.
Furthermore, it was also mentioned that those earning lower-income typically lack the left over funds for investments after saving money for emergencies.
This is in contrast to the higher income group who feels more of an inclination to to invest their additional funds, the SC added.
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