On TikTok, Instagram and even through artificial intelligence (AI) powered budgeting apps, a new wave of Malaysians is rethinking how money is managed.
For Gen Z especially, saving for the future is no longer an afterthought but an active part of their daily routines.
At the same time, a quiet shift is happening among those who earn the least; lower-income Malaysians are becoming more financially aware, more cautious with debt and more willing to plan for retirement.
Yet, while younger and lower-income groups seem to be finding their financial footing, Malaysia’s middle class is quietly struggling.
Rising costs, shrinking savings and weaker financial buffers are starting to weigh heavily on households that once felt more secure.
These contrasting realities are captured in the 2025 Malaysian Financial Literacy Survey (RMFLS) by RinggitPlus, the eighth annual study tracking how Malaysians think about and handle their finances.
Lower-income Malaysians step up on planning and awareness
Progress has been encouraging among lower-income Malaysians. The survey shows that 55 per cent of those earning below RM2,000 a month have started planning for retirement, a jump from 48 per cent in 2024.
Financial literacy is also improving: only 40 per cent now say they are unfamiliar with credit scores, compared to 45 per cent last year.
There’s also greater caution around debt. Some 36 per cent of lower-income respondents say they actively avoid Buy Now, Pay Later (BNPL) services, making them the most conservative group in this regard.
These shifts indicate a shift in mindset, particularly as rising living costs and government initiatives prompt this group to plan more carefully.
Middle-income Malaysians under pressure
The story looks very different for the middle class. Those earning RM5,000–RM10,000 a month are saving less than before.
Only 23 per cent manage to set aside between RM1,001 and RM1,500 monthly, down from 29 per cent last year.
Meanwhile, the share of this group saving under RM500 has jumped to 39 per cent, from 31 per cent previously.
Financial resilience has also weakened: just 27 per cent say they could survive more than six months without income, compared to 32 per cent last year.
Many are cutting back on eating out, leisure and subscriptions simply to stretch their paychecks.
Although nearly half of Malaysians (48 per cent) overall feel better off financially compared to 2024, that optimism is less pronounced among the middle-income segment, with only 54 per cent saying they feel better off, down from 58 per cent last year.
Gen Z becomes the bright spot
Gen Z is showing signs of becoming Malaysia’s most financially proactive generation. 40 per cent now save more than RM500 monthly, compared to 36 per cent last year, while only 11 per cent say they do not save at all; the lowest across all generations.
Their appetite for financial planning is also growing, with 57 per cent already preparing for retirement, up from 53 per cent in 2024.
What sets them apart is their comfort with technology: 62 per cent use AI-driven budgeting apps, robo-advisors or financial chatbots to guide their money decisions.
Insurance becomes a growing strain
Rising costs are reshaping insurance coverage. 22 per cent of Malaysians with insurance have either switched to cheaper plans or cancelled at least one policy in the past year.
Medical insurance coverage remains low, with 43 per cent still uninsured and 15 per cent relying only on company-issued medical cards.
Less than half of Malaysians (48 per cent) have life insurance or Takaful, signalling that many are deprioritising protection due to affordability concerns.
Retirement, credit scores and social media learning
Overall, Malaysians are becoming more financially aware. 64 per cent now say they have started planning for retirement, compared to 60 per cent in 2024. More are confident in their Employees Provident Fund (EPF) savings too, with 22 per cent believing it will be enough, up from 19 per cent last year.
Credit awareness has improved as well, with fewer than half (47 per cent) unfamiliar with credit scores, down from 53 per cent.
Much of this learning is happening online: 68 per cent of Malaysians now rely on platforms like TikTok, Instagram and Facebook to learn about money.
Shifts in investment habits
When it comes to investing, half of Malaysians still have not started. But for those who have, traditional options remain popular: Amanah Saham Nasional Bhd (ASNB) funds (64 per cent), unit trusts (42 per cent) and precious metals (38 per cent).
Gen Z, however, is experimenting more with cryptocurrency and robo-advisors, while millennials and Gen X lean toward local stocks.
A call for support for the middle class
Reflecting on the findings, RinggitPlus Chief Executive Officer (CEO) Yuen Tuck Siew said that RMFLS 2025 reflects the resilience of the Malaysian people.
“Many lower-income and Gen Z Malaysians are taking steps in the right direction; saving regularly, planning for retirement and building good financial habits despite the challenges they face.
“Our findings also reveal that Malaysia's middle class deserves renewed attention and support. This resilient group continues to work hard despite facing tighter household budgets and reduced savings capacity.
“As Malaysia progresses toward developed nation status, ensuring our middle class has the right tools and opportunities to rebuild their financial strength will be crucial for sustainable economic growth,” he said.
The survey, endorsed by the Financial Education Network (Fen) and supported by KAF Digital Bank, CIMB Foundation and Experian, gathered responses from more than 3,000 Malaysians nationwide.