How Malaysian Gen Z is adapting financially amidst economic challenges
Etiqa’s Gen Z Financial Health Survey revealed that 64 per cent of young Malaysians cited insufficient emergency funds and difficulties saving money as their top concerns.
L.R Turner17 Jan 2025 03:00pm

Photo for illustrative purposes only. Photo: Canva
Etiqa’s Gen Z Financial Health Survey, undertaken in June 2024, revealed that 64 per cent of young Malaysians cited insufficient emergency funds and difficulties saving money as their top concerns.
These challenges are compounded by fears of poor credit scores, with 48 per cent expressing anxiety over their financial health.
Despite these hurdles, Malaysian Gen Z is adapting remarkably well.
A staggering 90 per cent to 95 per cent of respondents acknowledged that current economic conditions, such as inflation and higher interest rates, had influenced their saving behaviours.
This has led many to delay big-ticket purchases like property and cars, with 35 per cent opting to postpone such expenditures.
Instead, they are prioritising financial education and exploring new avenues for income generation, including investments.
In response to financial pressures, Malaysian Gen Z has adopted frugal habits while remaining future-focused.
Over half (55 per cent) now eat out less, preferring to cook at home—a shift that highlights their willingness to adapt.
However, this thriftiness doesn’t mean they’ve abandoned their goals as 33 per cent of the respondents are turning to investments as a means to grow their wealth, underscoring their proactive approach to financial planning.
According to the survey, online influencers or "fin-fluencers" play a critical role in shaping their financial literacy.
Figures like Mr Money and Financial Faiz make personal finance accessible and relatable, offering practical advice that resonates with the tech-savvy Gen Z audience.
These influencers blend financial expertise with personal anecdotes, addressing topics ranging from money management to mental health and work-life balance.
In terms of investing, Malaysian Gen Z’s investment portfolio is as diverse as their ambitions.
The survey found that 65 per cent of this demographic is actively engaged in saving and investing, favouring relatively stable and liquid products.
Key investment choices include: Insurance (33 per cent), gold and precious metals (31 per cent) and mutual funds and bonds (27 per cent).
This cautious approach contrasts with their Singaporean peers, where 57 per cent of Gen Zs invested in higher-risk assets like stocks and ETFs.
The difference may reflect Malaysia’s less mature financial markets and a preference for stability amidst economic uncertainty.
While financial security is a priority, Malaysian Gen Z is not shy about pursuing their personal goals.
The survey revealed that 73 per cent of respondents listed buying a property or car among their top three priorities for the next 12 months.
Travel remains a key aspiration, with 50 per cent eager to explore new destinations, while 36 per cent prioritise spending on personal hobbies and self-pampering.
These findings highlighted a generation that is not only pragmatic but also determined to enjoy life.
They are adept at balancing immediate needs with long-term goals, a quality that sets them apart from previous generations.
A significant factor in Gen Z’s financial confidence is their access to financial education, often sourced online.
Platforms like YouTube, Instagram and TikTok offer a wealth of resources, while fin-fluencers provide relatable guidance.
As a result, 45 per cent of Malaysian Gen Zs express confidence in managing their finances, a sentiment echoed by their Singaporean counterparts.
The financial habits of Malaysian Gen Z are a blend of caution and ambition.
They are saving more, investing wisely and leveraging technology to enhance their financial literacy.
At the same time, they remain committed to their personal goals, whether it’s owning a home, travelling or indulging in hobbies.
Download Sinar Daily application.Click Here!