NextFin news, Petaling Jaya, Malaysia – On Wednesday, October 1, 2025, financial comparison platform RinggitPlus released findings from the 2025 Malaysian Financial Literacy Survey (RMFLS), highlighting significant progress among lower-income Malaysians in financial planning and literacy.
The survey, which included over 3,000 respondents, found that 55% of Malaysians earning less than RM2,000 per month have begun planning for retirement in 2025, an increase from 48% in 2024. This marks a notable shift towards long-term financial security within this demographic.
RinggitPlus CEO Yuen Tuck Siew attributed this positive trend to the impact of financial education initiatives, government support programs, and the recent minimum wage increase, which have collectively helped communities most affected by rising living costs.
"The uptick reflects the growing impact of financial education initiatives, government support programmes, and the recent minimum wage increase in helping communities most affected by rising living costs," Yuen said during a briefing on the RMFLS 2025 results.
The survey also indicated an improvement in financial literacy, with the percentage of lower-income respondents unfamiliar with credit scores dropping from 45% in 2024 to around 40% in 2025. This suggests increased awareness of credit's role in financial well-being.
Additionally, 36% of lower-income respondents reported actively avoiding Buy Now, Pay Later (BNPL) services, the highest avoidance rate among all income groups. Yuen suggested this reflects a cautious approach to debt management amid economic uncertainties.
However, the middle-income group (earning between RM5,000 and RM10,000 monthly) showed signs of financial strain, with only 23% managing to save between RM1,001 and RM1,500 monthly in 2025, down from 29% in 2024. Financial optimism also declined slightly in this group.
Conversely, younger Malaysians emerged as a positive segment, with 40% saving more than RM500 monthly, up from 36% last year.
The survey further highlighted rising insurance costs, with 22% of policyholders switching to cheaper plans or cancelling policies due to affordability concerns. Despite efforts to plan for the future, 43% of Malaysians remain without medical insurance, and 15% rely solely on company-issued medical cards.
Yuen praised Bank Negara Malaysia's recent requirement for personal loan applicants seeking amounts over RM100,000 to complete a financial education module, emphasizing the importance of financial education in improving overall financial health.
Bank Negara Malaysia announced on Tuesday, September 30, 2025, that consumers applying for personal financing exceeding RM100,000 must attend and complete a financial education course, a move welcomed by RinggitPlus as a step toward better debt management.
The 2025 Malaysian Financial Literacy Survey underscores the gradual but meaningful progress in financial awareness and planning among Malaysians, particularly in lower-income groups, amid ongoing economic challenges.
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