--- title: "Survey: 70% Of M’sians Save Less Than RM500 A Month, The Worst In 5 Years" url: https://weirdkaya.com/70-of-msians-save-less-than-rm500-worst-in-5-years/ date: 2022-12-07 modified: 2022-12-07 lang: en author: "Yu Ang Tan" description: "A survey by financial comparison website RinggitPlus reveals that Malaysians are in their worst-ever financial position to prepare for it. According to data from the RinggitPlus Malaysian Financial Literacy Survey..." categories: - "Lifestyle" tags: - "Malaysia" - "Malaysian save" - "Malaysian Savings" - "RinggitPlus" - "RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2022" image: https://cdn.weirdkaya.com/media/70-percent-of-msians-save-less-than-rm500-a-month-the-worst-in-5-years.png word_count: 840 --- # Survey: 70% Of M’sians Save Less Than RM500 A Month, The Worst In 5 Years A survey by financial comparison website RinggitPlus reveals that Malaysians are in their worst-ever financial position to prepare for it. According to data from the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2022, many Malaysians faces depleted savings, cashflow issues and other worrying trends. ## Malaysians are still struggling Malaysians from all walks of life are now facing **severe financial challenges that leave them vulnerable to financial shocks, as various financial aids reduced the impact in 2020 and 2021**. ![](https://cdn.weirdkaya.com/media/adult-asian-man-showing-his-empty-wallet-with-worried-expression-min-scaled.jpg)Photo:[Freepik](https://www.freepik.com/premium-photo/adult-asian-man-showing-his-empty-wallet-with-worried-expression_23566029.htm#query=no%20money&position=19&from_view=search&track=sph) > **70% of respondents indicated that they save less than RM500/month or do not manage to save at all. This is the worst-ever result tracked by the RMFLS in 5 years."** At the other end of the spectrum, **the amount of Malaysians who manage to save more than RM1,500 per month has also dropped significantly**. ![](https://cdn.weirdkaya.com/media/motorcyclist-uncle.png) **From 20% in 2020, the figure has dropped four times lower to just 5% in 2022. ** It also indicates that more Malaysians are struggling with less savings in hand, as 63% of respondents stated that they can survive for 3 months or less with only their savings (52% last year). > **"A similar pattern is also seen where 55% of Malaysians spent exactly or more than what they earned each month (44% last year), essentially living paycheck-to-paycheck,"it wrote.** ## Short term relief over long term security With depleted savings and higher cost of goods, the survey also highlighted a worrying trend where more credit cardholders are not paying off their bills in full – just 55% in 2022 compared to 70% last year. ![](https://cdn.weirdkaya.com/media/dried-stuff-stall-in-pasar-ss15.png) With the challenges in cashflow and savings, the survey results show that Malaysians are choosing short-term monetary relief over long-term financial stability. **A staggering 66% of respondents above 21 stated that they will consider applying for more Employees’ Provident Fund (EPF) withdrawals if the government allows it.** ## It's a wake up call **“The financial effects of the pandemic have been devastating and our survey findings this year reaffirm that Malaysians have real financial challenges to address. It is a harsh reality not only for the *rakyat*, but also for policymakers and industry players – this is a generational issue that requires long-term solutions with sustained and concerted support from all parties. We cannot leave anyone behind,” said Hann Liew, Co-Founder and Director of RinggitPlus.** ![](https://cdn.weirdkaya.com/media/hann-liew-co-founder-and-director-of-ringgitplus-scaled.jpg)Photo: Provided to WeirdKaya. ## Here are some other key findings: The RinggitPlus survey was conducted in 3 languages using a self-administered online questionnaire through a third-party analytics platform, based on a statistically-accurate sampling of 3,144 Malaysians aged 18 and above.  **Savings and Spendings** - 70% of respondents save less than RM500 per month – the highest year-on-year increase since RMFLS began in 2018. - Only 5% of Malaysians save more than RM1,500 per month, down from 15% in 2021 and 20% in 2020.  - 63% of respondents can survive 3 months or less with only their savings (vs 51% in 2021).  - 55% of Malaysians spend exactly or more than what they earn each month (vs 44% in 2021). - 71% of respondents believe that they are in control of their money. However, 43% of them spend exactly or more than what they earn each month.   **Retirement** - 82% of Malaysians believe EPF savings is not enough for retirement. - Among those who think that their EPF savings are not enough for retirement, 41% have yet to start financially planning for their retirement.  - 66% of respondents would still consider applying for more EPF withdrawals if the government allows it.  - 28% of respondents aged 35 and above have not started planning for their retirement.  **Investments ** - 52% of Malaysians above 18 have not yet started investing.  - Of those who have started investing, 52% of respondents have low risk appetites preferring capital preservation. On a related note, 50% of the same group prefer medium-term investments of 5-10 years. - Youth investors (age 18-35) have the same low risk appetite (54%) for investments.  - The top 3 investment products preferred by Malaysian investors are: unit trusts, stocks and cryptocurrencies.  - The three most important factors when choosing to invest with a robo-advisor are trusted brand (59%), Shariah-compliant (41%), and an established track record & historical performance (38%).  **Other observations and trends ** - 45% admitted to having shared information about their personal finances online.  - 59% of respondents do not know or are completely unaware of what a credit score is.  - 32% of Malaysians do not know the benefits of a good credit score.  - Only 55% of credit card holders pay their bills in full every month. The remaining 45% either pay only the minimum amount (18%) or whatever that they can afford that month (27%). - Cashless payments are now the preferred choice among Malaysians: QR payment (66%), contactless card (63%) and cash (56%). - 41% of Malaysians have used a BNPL service.  - 4 out 10 respondents do not have a medical card.  - 43% of respondents with dependents (married, married with children, divorced/widowed with children) do not own a life insurance policy. *In line with this, RinggitPlus recently introduced a new section to its Savings vertical on RinggitPlus.com that highlights the various cash management solutions in the market for better returns.* ### Read More: - [How Much Should Your Boss Contribute To Your EPF, And Can They Refuse To Pay?](https://weirdkaya.com/how-much-should-your-boss-contribute-to-your-epf-and-can-they-refuse-to-pay/) - [More M’sian Gen Zs Are Delaying Marriage Due To Money. Here Are 8 Financial Red Flags To Watch For When Dating](https://weirdkaya.com/more-msian-gen-zs-are-delaying-marriage-due-to-money-here-are-8-financial-red-flags-to-watch-for-when-dating/) - [I Switched Jobs & Am Worried About My EPF. Here’s Everything You Should Know](https://weirdkaya.com/i-switched-jobs-am-worried-about-my-epf-heres-everything-you-should-know/) - [EPF Reveals New Retirement Targets. Here’s How Much Malaysians Need To Save](https://weirdkaya.com/epf-reveals-new-retirement-targets-heres-how-much-malaysians-need-to-save/) - [From RM2,500 Starting Salary To RM1.3mil EPF. This Is The Formula](https://weirdkaya.com/from-rm2500-starting-salary-to-rm1-3mil-epf-this-is-the-formula/) - [You Should Have RM76K In Your EPF By 35 For A Comfortable Retirement, Says Financial Expert](https://weirdkaya.com/you-should-have-rm76k-in-your-epf-by-35-for-a-comfortable-retirement-says-financial-expert/) --- It’s unrelated to the article but here’s our brand-new podcast – [Talk Je Lah](https://open.spotify.com/show/4IelMkYKBjhrIiYp4bdIjC?si=e-nHjzc7QjWXZgsQPMrsvw&dl_branch=1)! ---