Malaysia’s millennial are carefree, like to spend money on luxury goods and are not worried about their career prospects or international politics.
A survey by Malaysia’s Youth and Sports Ministry reports.
When it comes to household spending, those born from 1995- 2009 (Gen Z) leads the race, accounting for 13% of the share, while US and UK’s same-age population accounts for only 3%.
The survey also shows that majority of youths are unclear about financial planning as they only kept their spare change in saving account.
But how accurate are all these blames? Let’s break it down and find out:
What is The Root of This Problem?
Low income and high living cost.
More 80% of young Malaysians said they are not able to save up because of insufficient income.
However, the report said the complaints about high living cost can never be appeased by merely asking for a pay increase as long as they don’t start building wealth and investing.
They survey showed only 7% of the respondents invested more than 30% of their monthly income while 45% only allocate 5% or less of their monthly income for investment.
The rest just don’t invest at all.
The lack of interest, insufficient knowledge, low financial literacy, shortage of funds and capital are among the major contributors to this worrying trend.
What Make Us Different From the Generation Before?
Malaysia’s Gen Z, are also known as the ‘hyper-connected’ generation because survey shows that we spend an average of 8 hours a day on the Internet, with 41% feel incomplete when not connected.
Gen Z is also self-starters as the majority of us hope to do something new when making career choices, such as to turn their hobbies into a profession or become to entrepreneurs and run their own business.
The study reveals that Gen Z takes life the most seriously compared to any generation before us.
Most of the youth today worries of the struggle to find a good job, whether or not they will be accepted into a reputable higher education institution, and worry about their family’s financial situation.
As a result of this, yes a high percentage of the youths do deem a high salary as the benchmark of success.
On social awareness, Gen Z youths are more socially responsible to the world and society.
What Is the Solution for a Progression?
Malaysia will face an aging population when more than 15% of Malaysians will be older than 65 by 2035.
This is an alarming reminder of the need for financial security for every individual.
A systemic safety net put in place might face a strain it never faced before.
It is essential too for the government to re-calibrate the initiatives to effectively get the young ones to invest.
Especially according to their mindset of wanting simplicity and instant gratification if they were to invest.
If the young generation that does not invest for their future, the nation risks in building a society that will not be able to withstand potential shock of an aging population, economic inequality and post-work or post-wage.
Let’s All Work Towards A Financially Stable Future For All.
Becoming money smart, that is the goal here.
We, the youths of Malaysia are more technologically advanced and open to information than any of the generation before us.
So we need to start seeing opportunities through investing as a reward, not just purely risk.
Financial knowledge is critical to this age group as they are in transition from being dependent to independent in personal financial management.
The basic financial knowledge of saving at least 10% to 20% of your monthly income and setting money aside before spending have to be learnt, he observes.
Now, Can Malaysian Youths Progress The Country in the Future?
Yes, we can.
The younger generations of today have been nurtured by certain values and practices passed down from their parents’ and grandparents’ generations.
That, combined with easier access to education and information on the Internet, have expanded their minds.
It is safe to say that the Malaysian youth today are bright, innovative, creative and possess a high degree of general knowledge.
However, in order to translate these abilities into actions so they can take Malaysia to greater heights, they need to be provided with the necessary support and guidance.
How good are you with handling money? Do you need any help or more information on financial stability? Are you planning on starting your own business but don’t know how? Do have an amazing idea that would be a smashing business?
