Young Malaysians struggle to build financial resilience

KUALA LUMPUR: More needs to be done to improve financial literacy among young Malaysians, said Prudential Malaysia Assurance Bhd (PAMB).

This includes greater awareness of riskier financial instruments. Additionally, more communication is needed about the benefits of protecting incomes and health to instil stability in later life.

PAMB chief executive officer Lim Eng Seong said he believes that these steps will help address the issues young Malaysians face regarding their future financial stability.

“Financial empowerment needs to start at a young age and include continuous learning that evolves alongside the individual’s growth and stage in life,” he said in a statement yesterday.

For PAMB, Lim said that their corporate responsibility programmes are working toward this agenda.

“This includes our financial education programmes, ChaChing, Duit Right, and Adult Financial Education (AFE), catering to different life stages, from as young as seven to adulthood.

“We also have PRUKasih Aman, a micro-insurance solution for the low-income community to help them attain the benefits and protection that come with an insurance plan,” he added.

PAMB yesterday released ‘Fulfilling Futures – Seeking Future Financial Security: The challenges facing young Malaysians,’ a report written by Economist Impact, which looked at how Malaysians across different age groups are saving for their future and the challenges faced by young Malaysians in becoming financially resilient.

The report shows that concerns about personal finances are strongest among the youngest cohort of Malaysians (aged between 25 and 34).