Many Malaysians have short-term mindset in financial management – BNM Governor

28 Oct 2023 04:19pm
Image for illustrative purposes only. - FILE PIX
Image for illustrative purposes only. - FILE PIX

KUALA LUMPUR - A considerable number of Malaysians are still adopting a short-term mindset when it comes to financial management, according to Bank Negara Malaysia (BNM) governor Datuk Abdul Rasheed Ghaffour.

Many Malaysians have a lackadaisical attitude in managing their financial risks, including when facing unforeseen situations, he said.

"Nearly half of Malaysians have difficulties in setting aside RM1,000 for the purpose of emergencies, and one in three Malaysians are not interested to learn about insurance and takaful,” he lamented in his speech at the Johor Financial Literacy Carnival (KCK Johor) in Kulaijaya today.

Abdul Rasheed said it is worrying that Malaysians’ financial knowledge is not growing in line with their financial management attitude and behaviour.

According to Credit Counselling and Debt Management Agency (AKPK) data, many Malaysians have to go into debt when in need of money during emergencies.

Meanwhile, one in three Malaysians is burdened with debt although most of them have a reasonable level of income, he said.

"Research has found that 37 per cent of Malaysians share their passwords and personal identification numbers with families and friends,” he disclosed.

Therefore, Abdul Rasheed said, everyone must have knowledge about various financial products and their suitability -- including how to manage debt, assess risks and returns of investments, and take steps to safeguard against becoming a victim of financial fraud and scams.

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"A financially-literate society will be able not only to increase their living standards but also contribute to national economic growth,” he added.

BNM, in collaboration with members and partners of the Financial Education Network (FEN) as well as the financial industry, is organising KCK Johor from Oct 27-29 at AEON Mall Kulaijaya, Johor.

KCK Johor marks the finale of the Financial Literacy Month 2023 held throughout this month, which is aimed at raising awareness on the importance of financial literacy and promoting financial inclusion among Malaysians. - BERNAMA

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