is sufficient to cover living expenses of at least three to six months in the event of loss of income. second, the same survey also revealed that a significant number of malaysians like to “ live for the moment ” and display short - sighted tendencies – focusing on “ instant gratification ”. this observation tends to be true, particularly among the millennial generation. millennials are more passionate in keeping pace with the latest digital lifestyle. a study by the asian institute of finance in 2015 found a majority of youth to be living on high borrowing costs – 38 % of youths rely on personal loans, while another 47 % engage in expensive credit card borrowings. often, they will soon find these debts to be burdensome and result in financial problems. from january to august this year, akpk ’ s data indicated that above 3, 400 borrowers between the ages of 20 – 30 years have sought akpk ’ s assistance, as compared to 3, 450 borrowers for the entire of 2016. third, majority of malaysians do not practice long term financial planning. only 40 % of malaysians consider themselves financially ready for retirement, despite the steadily increasing life expectancy of malaysians. the poverty line in malaysia is currently at rm950 per month, and based on the employee provident fund ( epf ), a retiree would need an estimate of rm228, 000 upon retirement to generate sufficient investment income to live above the poverty line for the 1 / 4 bis central bankers'speeches next 20 years. however, according to khazanah research institute, the average epf savings of those in the 51 – 55 age group is only approximately rm160, 000. lack of awareness on the importance of having sufficient saving for retirement can lead to profound results, including the struggle to meet post - retirement standard of living. fourth, malaysians still lack understanding on risk and return and are not able to make rational financial decisions. we remain prone to financial fraud and abuse. according to the police, the number of financial scams reported in malaysia has risen to an alarming 1, 883 cases between 2015 up to the 1st quarter of 2017, accumulating a total loss of rm379 million. this suggests that greed and ignorance can give way to rational financial decisions for many victims. based on these observations, a lot more is left to be desired on the state of financial literacy to realise financial well - being for malaysians. it is acknowledged that improving financial literacy

encik abdul rasheed ghaffour : realising financial well - being address by mr encik abdul rasheed ghaffour, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the federation of malaysian consumers associations ( fomca ) conference 2017 " towards an effective financial education strategy for malaysia ", kuala lumpur, 3 october 2017. * * * it is my great pleasure to have the opportunity to speak at the fomca conference this morning. i would like to express my appreciation to fomca for the commendable initiative to gather the minds of leading stakeholders in the area of financial literacy today. the theme of today ’ s conference — ‘ towards an effective financial education strategy for malaysia ’ — is indeed relevant ; and will certainly provide a great opportunity for government agencies ; corporates ; consumer associations ; academicians and all of us present here today to exchange ideas and discuss this important issue on financial education. today, we are living in an environment that is becoming increasingly challenging. “ bits and bytes ” are slowly replacing “ brick and mortar ”. at the same time, malaysians are facing socio - economic changes, including demographic shifts, urbanisation and increasing life expectancy. these factors affect, not only the way we experience financial services, but also the necessary knowledge for consumers to make good financial decisions to realise financial well - being. therefore, ensuring malaysians have the right knowledge, skills and behaviour – to make informed financial decisions – is an important agenda for our nation. today, i would like to share with you – our vision to realise financial well - being for malaysians through financial literacy and financial education. let me begin by sharing four observations on the state of financial literacy in malaysia. first, malaysians tend to have low financial resilience and are vulnerable to financial shocks. among others, based on bank negara malaysia ’ s financial capability and inclusion ( fci ) survey conducted in 2015 - more than 75 % of malaysians find it difficult to raise even rm1, 000 of immediate cash money for emergencies. 32 % of malaysians – can only cover a week ’ s worth of expenses, at most, should they lose their source of income. in cases of emergencies, malaysians resort to cutting down on spending ; or borrow from external sources, such as friends and family members ; or even depend on credit lines, such as credit cards and instalment plans. an ideal situation is to have a financial buffer that