The Financial Education Network (FEN) has published a discussion paper outlining the proposed features of Malaysia’s second National Strategy for Financial Literacy (NS2.0).
This will guide financial literacy initiatives from 2026 to 2030.
The strategy aims to build on the progress made under the first National Strategy (2019–2023) while addressing gaps and emerging challenges in the financial landscape.
Since the launch of the first National Strategy, Malaysia’s Financial Literacy and Capability (MYFLIC) Index has improved, rising from 57.1 in 2018 to 59.1 in 2024.
However, gaps persist, particularly among vulnerable groups such as youth, lower-income households, and gig workers.
The NS2.0 seeks to create a more financially resilient society by providing inclusive and innovative financial education through a collaborative, whole-of-nation approach.
Key objectives include enhancing financial decision-making, strengthening digital financial literacy, improving financial inclusion, and fostering long-term financial resilience.
The discussion paper highlights several challenges shaping the financial literacy landscape, including low financial awareness in certain demographics, rising financial scams, and the behavioral risks associated with digital financial services.
With the increasing use of “painless payment” methods such as e-wallets and Buy Now, Pay Later (BNPL) schemes, the strategy emphasises the need to equip Malaysians with the skills to manage their finances responsibly in a digital economy.
It is worth noting that Malaysians made 77.3 million BNPL transactions, spending a whopping RM 6.2 billion (USD $1.38 billion) in 2023 alone.
Additionally, NS2.0 aims to align financial literacy efforts with Malaysia’s national development plans, the Financial Sector Blueprint 2022–2026, and broader Sustainable Development Goals (SDGs).
To address these challenges, the NS2.0 proposes five strategic priorities: promoting financial planning and retirement preparedness, fostering responsible debt management, strengthening financial risk protection, encouraging the safe and confident use of digital financial services, and supporting informed investment decisions.
The strategy also underscores the importance of behavioral insights, research-driven approaches, and public-private partnerships in improving financial education efforts.
It highlights cross-cutting themes such as gender equality, mental health, and climate awareness, ensuring financial literacy initiatives remain relevant to broader societal issues.
FEN, an inter-agency platform established in 2016 to enhance financial education efforts through collaboration and impact-driven initiatives, is inviting feedback on the discussion paper from government agencies, financial institutions, consumer groups, and the public.
Its members include the Ministry of Education Malaysia, Ministry of Higher Education, Bank Negara Malaysia, Securities Commission Malaysia, Employees Provident Fund, Credit Counselling and Debt Management Agency (AKPK), Perbadanan Insurans Deposit Malaysia, and Permodalan Nasional.
Stakeholders are encouraged to provide structured input, including alternative proposals, supporting rationale, and evidence-based recommendations.
Submissions should be emailed to the NS2.0 Secretariat at NS2@bnm.gov.my by 28 March 2025.
Featured image credit: Edited from Freepik
