Sun Life has unveiled its inaugural “Asia Financial Resilience Index – Malaysia” today, shedding light on the financial behaviors and beliefs of individuals across the region and the challenges they encounter in building long-term financial security. The Index reveals that Malaysian millennials exhibit the highest levels of financial resilience, yet many lack a concrete action plan.
Based on a survey of 8,000 individuals across eight markets including Malaysia, Singapore, mainland China, Hong Kong SAR, India, Indonesia, the Philippines, and Vietnam, key findings indicate:
Millennials Lead in Financial Resilience
In Malaysia, millennials emerge as the most financially resilient generation. They demonstrate higher levels of optimism (69%) regarding their financial futures and are more inclined to base financial decisions on research (65%) compared to older generations (62%). Despite this, only 40% of millennial respondents have a financial plan extending beyond one year, posing a risk to their financial goals.
Sun Life Malaysia, CEO and President/Country Head, Raymond Lew said, “Malaysian millennials stand out as the most financially resilient generation. With their tech-savvy nature, millennials have access to various financial planning tools and are more likely to base their decisions on thorough research. However, the study highlights the concerning trend that many lack a long-term financial plan to achieve their life goals.”
Confidence vs. Preparedness
The Index reveals a disparity between confidence and preparedness in meeting long-term financial goals. While 66% of Malaysian respondents express confidence in achieving such goals (compared to the Asia average of 69%), only 38% have a financial plan extending beyond one year (compared to the Asia average of 40%). Additionally, only 18% have a retirement or pension plan despite retirement and savings ranking as their second highest financial priority.
Lew said, “The Index provides insights into how Malaysian households approach their financial goals and safeguard their future. While optimism is high, a concrete financial plan is essential to translate this optimism into reality. A financial plan offers clear steps toward achieving wealth and health goals.”
Emotion and Trust Influence Decision Making
Emotion and trust play pivotal roles in financial decision-making for over a third (36%) of Malaysian respondents. While social media serves as a common source of financial advice (43%), trust in it remains low (11%). Despite nearly half (48%) expressing a desire to educate themselves more about personal finance, few seek professional help or advice (24%) in managing their finances.
Wealth ≠ Financial Resilience
Even among the wealthiest respondents, gaps in preparedness are evident, including underestimating expenditure and lacking long-term financial planning. The study underscores that being wealthy does not guarantee financial resilience, as lower and high-income respondents exhibit similar tendencies to exceed monthly budgets and lack long-term financial plans.
The Sun Life Asia Financial Resilience Index aims to understand how individuals plan for and overcome unexpected high-impact financial events. Conducted across eight markets, the study measures financial resilience against five key pillars: confidence, behavior, planning, tools, and resources.
Sun Life Malaysia has also launched the “Insure or Unsure: Sun Life Insurance Literacy Survey” to assess Malaysians’ self-perceived level of insurance literacy. The survey results have led to the launch of the InsureLit Campaign, aimed at equipping Malaysians with essential insurance and takaful knowledge and promoting positive financial behaviors.
