MICROCAPITAL BRIEF: Government of Malaysia Launches National Strategy for Financial Literacy

Malaysia recently launched a National Strategy for Financial Literacy for the years 2019 through 2023. The strategy outlines the following priority areas: (1) “nurture values from young [people]” by incorporating financial education into school curricula; (2) “increase access to financial management information” through the design of appropriate financial education material; (3) “inculcate positive behaviour among targeted groups” by delivering training to help young people and the self-employed to attain financial resilience; (4) “boost long-term financial and retirement planning” by promoting avenues for saving and income diversification; and (5) “build and safeguard wealth” by promoting better risk management.

On the motivations for the strategy, Prime Minister Mahathir of Malaysia commented, “Knowledge of financial management is very important to avoid over indebtedness.” Dr Mahathir also expressed support for harnessing public-private partnerships to implement the strategy.

The five-year strategy was developed by the Financial Education Network (FENetwork), an inter-agency group co-chaired by Bank Negara Malaysia (BNM), the country’s central bank, and the Securities Commission Malaysia, which was established by statute in 1993 to regulate and develop capital markets in Malaysia.

The new effort builds on existing financial education programs such as the following, each of which is operated by BNM: Karnival Kewangan, an annual edutainment conference that raises awareness on financial matters; a train-the-trainers program for counsellors at government agencies to learn how to conduct financial education sessions; and an online learning platform called Personal Financial Education.

Established in 2016, FENetwork’s mission is to increase the impact of financial education initiatives and identify new opportunities to boost financial literacy within Malaysia.

Established in 1959, BNM manages the country’s monetary policy, seeks to ensure the stability of the financial system and promotes financial inclusion.

By Eugene DeCosse, Research Associate

Sources and Additional Resources

The Alliance for Financial Inclusion press release
https://www.afi-global.org/news/2019/07/malaysias-pm-launches-national-strategy-financial-literacy-2019-2023

Financial Education Network homepage
https://www.fenetwork.my/

Financial Education Network press release on the National Strategy for Financial Literacy
https://www.fenetwork.my/wp-content/uploads/2019/07/23072019-PR-NS-Launch-EN-f.pdf

Securities Commission Malaysia homepage
https://www.sc.com.my/

Bank Negara Malaysia homepage
http://www.bnm.gov.my/

Personal Financial Education website
www.epsa.gov.my

MICROCAPITAL BRIEF: Alliance for Financial Inclusion (AFI) to Move Headquarters From Thailand to Malaysia in 2015
https://www.microcapital.org/microcapital-brief-alliance-for-financial-inclusion-afi-to-move-headquarters-from-thaliand-to-malaysia-in-2015/

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