Malaysia’s central bank recently kicked off the Karnival Celik Kewangan (Financial Literacy Carnival) in Tawau, marking a significant step towards enhancing financial resilience within underbanked communities. The event, graced by Bank Negara Malaysia’s Deputy Governor Adnan Zaylani Mohamad Zahid, highlighted the critical need for improved financial literacy in light of escalating living expenses, global economic uncertainties, and the swift digital transformation.
Adnan emphasized that possessing financial knowledge is no longer just advantageous but has become an essential life skill. He stressed that even seemingly minor financial choices can have profound and lasting impacts on both individual households and entire communities.
The latest Financial Capability and Inclusion Demand Side Survey (FCI 2024) uncovered alarming statistics revealing that 71% of respondents in Sabah struggled to come up with RM1,000 in case of an emergency, underscoring inadequate financial safety nets within these regions. In response to this pressing issue, BNM dispatched its Skuad Celik Kewangan to nine locations across Sabah like Lahad Datu, Kunak, and Pulau Bum Bum to provide hands-on financial education.
The carnival served as a platform for governmental organizations, financial institutions, non-governmental bodies, and community leaders to impart practical insights on various aspects such as budgeting techniques, savings strategies, takaful options, investment avenues, and retirement planning. Participants were also alerted to the risks associated with impulsive digital spending habits and cyber fraud schemes prevalent in the realm of e-wallets and online monetary services.
Adnan raised concerns over the concept of “painless payment,
” cautioning against unchecked expenditures resulting from seamless digital transactions. He further highlighted a widespread lack of awareness among consumers regarding basic cybersecurity practices like employing secure PIN codes and identifying fraudulent tactics. The event spotlighted the absence of social security measures for informal laborers while agencies like EPF and SOCSO offered guidance on accessible retirement plans and insurance packages.
Additionally featured was FEN’s Proaktif initiative targeting final-year university students aimed at instilling responsible financial behaviors early on to help graduates steer clear of debt pitfalls. Adnan concluded his address by emphasizing that fostering financial literacy is a collective obligation crucial for nurturing a resilient society well-informed about managing finances effectively.
By bringing together diverse stakeholders at events like these carnivals across Malaysia’s different regions – be it Sabah or other states – we can make significant strides towards empowering individuals with crucial knowledge about handling their finances wisely.”
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