Generally, the younger population aged between 20–35 years old – perceive long-term financial planning apply to a time horizon of only the next 10 to 20 years. Therefore, financial education introduced from an early age and throughout life events is certainly essential. With sufficient basic financial knowledge and relevant skills – ingrained into the younger individuals’ behaviour and attitude – they will be more prepared and empowered to lead a healthier financial lifestyle as they move into adulthood. Financial education from young – serves as a firm foundation to influence behaviour for a more sustainable life-long financial planning. Towards this end, Bank Negara Malaysia, in collaboration with the Ministry of Education – has successfully integrated basic financial education elements into the school curriculums beginning 2014, which will be expanded to all primary and secondary school levels by 2021. Similarly, greater attention should also be accorded to long-term financial and retirement planning from young, or when entering the workforce. There should be greater awareness on the importance of saving for the future. As most of us here represent employers throughout Malaysia, I would urge that financial education and planning aspects should be embedded in our training modules, including the retirement module developed by AKPK and KWSP. Moving on the second focus area on – individual responsibility to take charge of its own financial decisions and well-being. The Financial Capability and Inclusion Demand Side Survey 2015 – also suggests that Malaysians are not adequately taking charge of their own financial decisions and well-being.

What we want to achieve is to improve people’s ability – to manage money well – through their entire life cycle, and their ability to handle periods of difficulties. Financially literate population – will help to improve the well-being of individuals and households; ensure a sound and competitive financial system; as well as contribute to the sustainable growth of the economy. Let me explain further on the importance of elevating financial literacy: a. For individuals and households – financial literacy has become a key life skill. Those who go through life by making sound financial decisions – will potentially be more resilient and end-up with a much higher standard of living throughout their lifetime, including during retirement. With the right knowledge and skills – individuals can live within their means; manage finances; and improve chances of achieving their ultimate financial goals. A financially literate Malaysian – would be aware of the importance of long-term financial planning and will actively save for the future. b. Empowered financial consumers – is an important element in enhancing market discipline and promoting financial stability. Financially literate consumers can collectively influence the behaviour of financial institutions to operate in a responsible, transparent and efficient manner. Financial institutions would be more competitive and motivated – to provide proper advice and offer suitable products, including that can support long-term financial planning. c. Successful channelling of savings into productive investment opportunities – will also promote better economic growth.