KUALA LUMPUR 12 DEC 2022 – Financial well-being refers to an individual’s ability to meet ongoing financial obligations, make financial decisions, and achieve financial goals that can improve one’s overall quality of life.
Similarly, businesses should be in good financial health in order to withstand unexpected financial setbacks to secure their business growth.
These indicate that the urgency of inculcating financial well-being should begin with individuals, families, business communities, and society at large.
Due to the Covid-19 pandemic and uncertain economic situations, it cannot be denied the government had introduced various fiscal measures such as stimulus packages, wage subsidies, and cash handouts to help our nations to stay afloat.
However, in order to have a greater, longer-term impact, Malaysians’ financial literacy must be improved.
Recently, RinggitPlus Malaysian Financial Literacy Survey found several painful truths on the current financial state of our citizens, including lack of savings, cash flow issues, and worrying trends.
Based on the general opinions and the common financial challenges in some way portrays the T20, M40, B40 ratio has been predicted to worsen to T10, M40, and B50 groups.
Following the last plea list published by Bernama prior the election and formation of the Unity Government,
Malaysia Literacy in Financial Education Association (MyLIFE) Chairman Amy Seok suggested the government to focus on strategizing action plans to elevate financial literacy among Malaysians.
All this while, the government has strongly become a caretaker in providing financial aids and subsidies to the nations. Nevertheless, this is not a long-term solution, and therefore the government should allocate resources or grants to elevate the financial literacy of the nations by helping them attain financial resilience and sustainable development goals.
Furthermore, to eradicate poverty, helping the underprivileged individuals is indeed a committed mission, to educate and guide them to stand on their feet is even a noble vision.
This can be accomplished when the government leverages financial education and technology to address specific financial pain points and provides simple ways for Malaysians to improve their financial skills, knowledge and prepare for future crises.
Hence, MyLIFE urges all the relevant stakeholders to take urgent actions to solve these matters which involve the joint efforts of government agencies, regulators, financial institutions, NGOs, and educational institutions. MyLIFE also hopes to collaborate and bridge the ecosystem, connecting experienced financial advisors and planners to join forces in elevating financial literacy. An effective and inclusive ecosystem needs to progressively develop strategies and take immediate initiatives especially in elevating the financial well-being of households and businesses.
To concern on these main targeted communities:
The Youth (those ages 18 to 25); The Malaysian’s graduates and undergraduates are losing confidence for their future and the nation’s future. Immediate actions need to be taken to reach out to them. The new generation has an entirely different value system compared to the previous generation.
The Family (those ages 25 to 80; can further classified to young family member, old family member)
The Employee (those ages 20 to 60; can further classified to junior employee, senior employee)
The SMEs & Businessman community (those ages 30 to 60)
To consistently raise constant awareness and conduct educational campaigns on financial literacy:
1. Upskilling towards income creation
2. Managing cash flow and spending habits
3. Saving for emergency fund, retirement, health & fundamental insurance
4. Investing in trusted Investment channels
5. Avoiding fraud and scams
It is also suggested that the government can focus more on community projects that can be offered to the M40 and B50 communities as well, other than giving T10 to continuously monopolize the opportunities and margin.
In fact, relevant stakeholders can further segmentize each group into different categories to offer different levels of financial support and assistance.
For instance, when it comes to extreme poverty, or disabled communities, they are mostly dependents; but those who are young and healthy, we can guide them to upskilling and unleash their potential to prepare themselves in the workforce or to venture into the world of entrepreneurship.
Overall, as the need for financial planning and literacy grows in the post-pandemic era, the government can play a more significant role in empowering individuals to become financially literate, beyond economic and nation building.
Through these recommended solutions, Malaysians of diverse backgrounds and financial standings can gain better insights into their habits and rebuild their financial stability, even as Malaysia recovers and adapts to the current and upcoming global economic challenges. – MYLIFE
Read more : FREE HEALTH SCREENING FOR AGED 40 AND ABOVE
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