Financial Capability & Utilization of Financial Advisory Services in Malaysia
Kuala Lumpur, 10th April 2018 – Malaysian Financial Planning Council (MFPC) has released their report of the study after having been commissioned by the Capital Market Development Fund (CMDF) to investigate Malaysians financial capability. The survey was done will collaboration with academia and industry professionals, and the Council hopes it will serve as a literature for enhancement of financial education and for capital market investing.
The survey had a few objectives, primarily to investigate the general financial literacy and financial capability of Malaysians; to determine Malaysian’s literacy of the Capital Market and also to understand Malaysian’s preferences with regard to financial planning advisory services. The industry academia partnership allowed for the best rigour and high quality methodology to be used. The Council conducted this survey incepting a wide section of the population in Malaysia and the respondents was separated into four target categories which are public sector employees; SME/private sector employees/general public; FELDA/rural area residents and also youth in institutions of higher learning.
This survey revealed the following:
- Respondents generally lacked financial capability as only 65% of respondents admit knowing how to manage their money
- About 40% of respondents do not plan ahead financially
- Only 33% of respondents acknowledge understanding financial products;
- About 60% of respondents have little confidence in financial planners
- About 60% of the respondents received monthly income of less than RM3,000; thus, the majority of them only have enough money to sustain their basic needs
- More than 50% of them have a savings ratio of less than 10% of their income and it is therefore not surprising that only a third of them owned their own home
- More than 80% believed that expenses can sometimes be higher than income; that they could depend on their EPF savings to meet living needs after retirement
- Majority of them believe that AKPK offers financial loans
- 44.3% Respondents have little knowledge of the time value of money, inflation and have a highly inadequate understanding of risks and investments
Assoc. Prof Dr Mohamad Fazli Sabri (UPM) who was the project leader of this research, remarked, “Interestingly, we found that only 25.7% of the respondents was aware that all the investments in Malaysia are legal. As participants of investment instruments, consumers must be careful to various measures that may be used by wrong channels that may attract them to channel their funds into illegal funds”, he added.
Dr Fazli Sabri emphasised that MFPC will continue its financial planning education for members of the public to create awareness of the importance of setting financial goals and taking the necessary actions to achieve financial wellness. He emphasised the importance of financial planning education as knowledge for people of all levels. “We are, and we have been focussed on conducting numerous financial literacy programmes, he said”.
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Malaysian Financial Planning Council
NOTE TO EDITOR:
Malaysian Financial Planning Council (MFPC)
MFPC is an independent body set up with the noble objective of promoting nationwide development and enhancement of the financial planning profession. MFPC provides an evolving set of Best Practice Standards and Code of Ethics that must be adhered to by Registered Financial Planner (RFP) and Shariah RFP designees. This requirement is aimed at ensuring that the public will be served with the highest quality of financial planning services. MFPC was registered on 10th of March, 2004 under the Societies Act, 1996. The Registered Financial Planner (RFP) programme was launched by the former Governor of Bank Negara Malaysia, Y.Bhg. Tan Sri Dato’ Sri Dr. Zeti Akhtar Aziz in November 2002.
The RFP designation was approved by Bank Negara Malaysia (BNM) as the prerequisite qualification to apply for the Financial Advisers’ License and Financial Advisers’ Representative License. RFP designation was also approved by Securities Commission Malaysia for the application of the Capital Markets Services License (CMSL) in view of the introduction of the Capital Markets and Services Act 2007.
Please visit: www.mfpc.org.my
Dear Members and Ladies & Gentlemen,
We are extremely pleased and excited to inform you our new MFPC1st Online System – one-stop online platform for you, our very own MFPC members!
We give you value-added benefits as a member – with just few clicks away, you can update your member details, apply for examinations and exemptions, register for events and even submit your CPD online!
It is also as easy as ABC to make payment – with our incorporated online payment system, convenience is what we want you to experience.
As an active member, you already have access to the system without having to register. Below is your login details:
Member’s Login Page: 1st.mfpc.org.my
Username: <member email address>
Password: <system generated random password>
If you need assistance or have any enquiries, please contact us at 603 – 6203 5899.
Thank you for your interest in financial planning and MFPC. We are looking forward to further develop the advancement of financial planning providers and practitioners.
MFPC Secretariat Office
Promotion from the rank Certified MFPC Trainer (CMT) To Principle Certified MFPC Trainer (Principle CMT) In MFPC
In tandem with the expeditious growth of the Certified MFPC Trainer community, the Certification and CPD Board (CCB) has deliberated to strengthen the structure of the trainer/lecturer certification system in providing a comprehensive coverage for all MFPC members who is inspired to register as Certified MFPC Trainer under MFPC.
In this regard, the CCB has considered pertinent factors such as variation of training abilities; scholarly contributions; valuable industry exposure; commitment and experience in developing the financial planning profession in Malaysia; and the Board has established a structured and systematic framework for Certified MFPC Trainers to provide continued support to the Council in offering quality financial planning education to the members and public at large.
With immediate effect, the MFPC’s trainer classification will be grouped into two categories, which are the Certified MPC Trainer (CMT) and the Principle Certified MPC Trainer (Principle CMT). Please find enclosed herewith up-dated Principle CMT and CMT guidelines for your attention.
In addition, the Board acknowledges and respects experts’ views and participations in contributing to the positive growth of the financial planning education; and the Board welcomes individuals in various relevant industries to register as Certified MFPC Subject Matter Expert.
For further clarification and assistance, please contact Ms. Wawa, Education and Training Department at 03-6203 5899 or email to email@example.com.
GUIDELINES AND POLICIES ON
PRINCIPLE CERTIFIED MFPC TRAINER AND
CERTIFIED MFPC TRAINER
(PRINCIPLE CMT AND CMT)
Malaysian Financial Planning Council
Dr Desmond Chong Kok Fei
Certification and CPD Board
Financial Planning Literacy Programme for Youths
Seremban, Negeri Sembilan, 6th January 2018 – Malaysian Financial Planning Council has organised a one-day Financial Planning Shariah Workshop for youths at Bilik Pameran Majlis Perbandaran Seremban.
This workshop is part of the initiative from MFPC in order to provide quality basic financial literacy for all Malaysians, which is aligned to achieve Sustainable Development Goals (SDGs) by United Nations (UN) of which the Council is a signatory. This one day workshop was launched by Deputy Minister of Education II, YB Senator Datuk Chong Sin Woon. The Council received support from many agencies especially agencies that are familiar within the financial sector such as EPF, FiMM, and AKPK and for the programme to cover key fundamentals of financial planning and to help youths to use financial planning knowledge towards their advantage. Besides, others NGO’s like Majlis Belia Malaysia also committed to ensure the success of this program by inviting all the youths in Negeri Sembilan in order to join this literacy programme.
The core objective of this programme is on creating awareness to youths on prudent personal finance, improve youth’s knowledge about planning aspects of personal finance and allows youths to master skills using personal finance management methods to have a better future.
YB Senator Datuk Chong Sin Woon, Deputy Minister of Education II, said ‘To promote more financial literacy among youths, the Malaysian government through the Ministry of Education is pleased that such a programme is being organised at no cost for participants’. He commended, MFPC for successfully organising this seminar and the various stakeholders for coming together to organise this programme.
Meanwhile, Mr. Michael Kok Fook On, said ‘Financial education must start at an early age and preferably before youths go off to work in the real world. Providing financial education to adults is not enough to ensure a financially literate Malaysia. To enable financial education to reach the masses, the subject must be integrated to our youth and children. Financial education should play an important role around the community in order to educate youths well’.
He reiterated that MFPC would continue to work with numerous stakeholders in the series of free literacy seminar and remains committed to promoting financial literacy and financial well-being. This financial literacy programme was made possible through the financial support of the Capital Market Development Fund (CMDF).
Financial Planning Literacy Crucial in Achieving National SDGs
Kuala Lumpur, November 24th, 2017 – As part of the Malaysian Financial Planning Council (MFPC) agenda to achieve the United Nations (UN) Sustainable Development Goals (SDGs) and to ensure proper planning and sustainability of financial literacy in Malaysia, the MPFC has signed a memorandum of understanding (MoU) to collaborate with Global Compact Network Malaysia (GCMY).
MFPC and GCMY will collaborate to promote awareness and advocate for financial planning to enable financial sustainability. They will also partner with the Government, think-tanks and academic centres to design sustainability into financial planning education. Together MFPC and GCMY will conduct training and information sharing sessions, seminars, workshops and best practice exchanges with stakeholders domestically and regionally.
MFPC has committed to SDG 4 and SDG 17 to, respectively, ensure inclusive and equitable quality education and to implement and vitalize global partnership for sustainable development. MFPC and GCMY have a roadmap to achieve these goals by raising awareness on financial planning, providing skills to improve individual understanding and knowledge of rights.
In expressing his appreciation, MFPC’s President, Michael Kok Foo On said “It is certainly a privilege for us to collaborate with a world recognised body and it is indeed very encouraging as we continue doing what we do ever since our initiative in 2002 through the support of the Malaysian Government”. He added “A good understanding in financial literacy will make an important impact to the efficiency of the financial system and to the performance of the country’s economy.”
Puvan J Selvanathan, President of GCMY, said, ‘“With MFPC we can help to improve the level of financial literacy nationally. People are sustainable when they have financial security on income, education and health for their household. MFPC programmes and projects strategically strengthen the achievement of the SDGs in Malaysia”.
MFPC recognises the challenge to meet the UN SDGs by 2030 and is committed to creating a viable economic foundation for the future. The target programmes will promote sustainable livelihoods, education and sustainable economic and financial well-being.