AT 27, administrative assistant Nur Dania finds it hard to make ends meet on her RM2,500 salary. To stay afloat, she takes on a second job on the weekends.
“Managing daily food and transport expenses is a constant challenge. Most days, I eat only once at work – either breakfast or lunch – which costs about RM10–12, and then wait until dinner at home,” she tells Sunday Star.
Though she lives with her family in the Klang Valley, Nur Dania is the main breadwinner. Her monthly commitments total around RM1,000, and she has no choice but to drive to work, as public transport does not reach her office.
“After paying off my commitments, my Buy Now Pay Later (BNPL) purchases, and my car, I’m often left with only RM100 by the 20th of each month,” she laments.
Despite her challenges, Nur Dania remains proactive. She has recently been reading financial websites and tries to put aside small amounts in safe investments. She is also looking into buying insurance, but is not sure if she can manage the regular payments.
Looking ahead, Nur Dania dreams of saving RM1,000 a month, clearing her student loans, building an emergency fund, and eventually having the financial freedom to travel.
Stories like Nur Dania’s are becoming increasingly common among Malaysian youth, many of whom struggle to cover basic expenses and have little opportunity to save.
Juggling bills, debts, and the dream of owning a home, many young Malaysians are facing the harsh reality that earning, saving, and surviving can be immensely difficult.
A future for financial inclusion
Recognising these challenges, the government launched the National Strategy for Financial Literacy 2026-2030 (NS2.0) last month to support Malaysians in managing their finances.
The five-year strategy aims to equip Malaysians with the skills to manage money wisely, safeguard against financial shocks, and prepare for long-term stability.
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Among its key initiatives is the National Coordination Office hosted by Bank Negara Malaysia to align financial literacy programmes across agencies.
The strategy has the right vision and structure, says the Federation of Malaysian Consumers Associations (Fomca), but it must be backed by strong implementation, proper funding, targeted outreach, and continuous monitoring.
“NS2.0 recognises the need to move beyond awareness campaigns and aims to integrate financial literacy into national development, particularly in the context of digitalisation and inclusion.
“The establishment of a National Coordination Office is a commendable step, as it can improve coordination among stakeholders and ensure accountability in implementation,” says Fomca CEO Dr Saravanan Thambirajah.
Saravanan: Financial literacy programmes must go hand-in-hand with systemic safeguards.
He notes the inclusion of clear priorities such as responsible debt management, retirement planning, risk protection, safe digital finance, and wealth creation.
The coordination office under the Financial Education Network (FEN) brings together representatives from the Securities Commission, the Employees Provident Fund (EPF) and the Credit Counselling and Debt Management Agency (AKPK), showing a concerted effort to improve financial awareness and address growing risks. The strategy also includes a monitoring framework to set clear targets and track progress.
A timely initiative
The announcement of NS2.0 is timely and necessary. The financial wellbeing of Malaysian youth in particular is worrying, compounded by the uncertainty of the pandemic years.
Most Malaysians lack sufficient retirement savings – just 18.6% of EPF members aged 18 to 30 have met the basic savings level for their age, while only 21.2% of those aged 51 to 55 have done so (the threshold is RM240,000 by age 55). The Youth and Sports Ministry flagged high bankruptcy rates, with over 5,200 youths below the age of 34 declared bankrupt over the past 5 years.
According to Bank Negara’s Financial Capability and Inclusion Demand Side Survey 2024, 26% of Malaysians feel that they carry too much debt, with 12% highly indebted. Many are young individuals struggling to manage student loans, store credit, and informal borrowing. Last year, AKPK found that 53,000 youths aged 30 and below carried debts worth nearly RM1.9bil in total, while 28% of working adults borrowed for essential purchases.
Malaysians between 19 and 30 years old also score below the national average in the Malaysia Financial Literacy and Capability Index (MYFLIC), revealing a persistent knowledge gap.
Wages vs cost of living
While the financial landscape looks dire, it would be unfair to pin it solely on poor financial planning. It is difficult to be financially secure when wages lag behind the cost of living, which is publicly perceived to be rapidly rising.
As of June 2025, the median monthly wage in the formal sector stood at RM2,864, a modest 4.3% increase from the previous year. Yet, wealth distribution is skewed – just 10% of employees break the RM9,200 monthly ceiling, earning more than 5 times what the bottom 10% receive. In a news report earlier this year, former Bank Negara governor Tan Sri Muhammad Ibrahim estimated that real wages have declined nearly threefold over the past 40 years.
Saravanan emphasises that financial literacy programmes must go hand-in-hand with systemic safeguards. Many consumers understand the importance of saving, he says, but their income levels are too low to sustain both living expenses and consistent savings.
“Many young Malaysians enter the workforce with significant financial burdens, including education loans, high transportation costs, and increasingly expensive housing. The combination of low starting salaries and a high cost of living makes it difficult for them to save or build emergency funds. As a result, a large number of young people depend on credit to sustain their lifestyle or even meet basic needs,” he explains.
This financial pressure is made more challenging by social responsibilities. Many young adults belong to the “sandwich generation”, supporting both children and ageing parents. The Bank Negara survey shows that 22% of Malaysians over 50 depend financially on their children.
The Youth Capital Market Survey 2022 by the Securities Commission found that the majority of Malaysian youths’ income is spent on food, household expenses, and debt repayment leaving limited room for savings or investment. Meanwhile, the rise of BNPL schemes have made it easier for youths to overspend.
Scams and online risks
Digital risks have also become an inseparable part of financial challenges. The surge in online scams, phishing, and mule account operations targets youth who are more active on social media and digital payment platforms, says Saravanan.
“The financial challenges faced by youths today are multifaceted – encompassing low wages, high costs, lack of savings, easy access to risky credit, and growing exposure to scams. It is no longer sufficient to teach money management in isolation; a broader socioeconomic and regulatory framework is needed to protect and empower them,” he says.
He stresses that financial education should be continuous and practical, starting from school through adulthood, incorporating real-life simulations and workplace-based coaching.
NS2.0 signals progress and lays the groundwork for a more financially capable Malaysia, but implementation will be the real test.
Building resilience is not just about teaching individuals to make better choices, but it is about creating an economy where those choices are viable. For young Malaysians, that means a future where financial literacy meets fair opportunity.
