Financial Capability & Utilization of Financial Advisory Services in Malaysia

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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”.

Members of the media can download the full version of the report (Click image below)

To obtain a hard copy of the report, please email to

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Syahmi Sulaiman

External Relations and Project Management

Malaysian Financial Planning Council

+603 62035899




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.

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