KUALA LUMPUR: Forty per cent of millennials are spending beyond their means, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said according to Bank Negara Malaysia, 47 per cent of Malaysian youths have high credit card debts.
"So think thoroughly about what is necessary and prioritise your purchases, whether it's a new outfit or new phone, or, like what one of my nephews wants, a PS5, and you will find that every ringgit will go a long way.
"Warren Buffett famously said, 'do not save what is left after spending, but spend what is left after saving'. In other words, pay yourself first and use the power of compounding to your advantage," he said at the Kembara Bijak Wang 2020 (KBW 2020) prize-giving ceremony today.
Tengku Zafrul said, for example, if a twenty-year-old wish to have RM1 million in savings by the time he or she turns 60, assuming an annual return of six per cent, he or she would need to save about 500 ringgit per month.
He said according to the Employees Provident Fund (EPF), 50 per cent of EPF members have less than RM200,000 in their accounts -- lower than the average of RM240,000 that members should have in basic savings when they reach age 55.
Tengku Zafrul also noted that 50 per cent of contributors would exhaust their savings within five years of their retirement.
"However, with the emergence of the gig economy such as Grab, Foodpanda and Shopee, we have many opportunities and options to earn alternative sources of income to enhance our savings.
"In that respect, I am very pleased to see many Malaysians taking up the challenge of starting their own business," he added.
He also advised Malaysian to strengthen their financial literacy skills, be it on growing their wealth via investments or protecting their wealth through insurance or takaful.
"Through events like KBW 2020, the goal of improving the financial wellbeing of Malaysians will become a reality in line with the Malaysian National Strategy for Financial Literacy," Tengku Zafrul said.
He said raising the level of financial literacy is a long-term commitment that requires the sustained efforts and support of many parties.
KBW 2020 is a programme involving 5,600 students from more than 20 institutions of higher learning and 22 UiTM campuses nationwide, co-organised by the Credit Counselling and Debt Management Agency (AKPK), HSBC Malaysia and Universiti Sains Malaysia.
The programme, which began in November last year, aims to boost the participants' financial awareness, encourage healthy financial habits and ensuring that they become more resilient, adaptable and financially prepared to face life's challenges, among others.
-- BERNAMA
Bernama
Tue Mar 09 2021
Tengku Zafrul advised Malaysians to strengthen their financial literacy skills, be it on growing their wealth via investments or protecting their wealth through insurance or takaful. Filepic/BERNAMA
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.