Level of Financial Literacy in Malaysia

Abstract

Governments around the world are recognizing the benefits to individuals and national economies of having a financially literate population that has access to appropriate financial products with relevant consumer protection in place. Measurement and analysis level of financial literacy play important roles in designing and implementing policies. This report reflects the level of financial literacy among Malaysians who resident in Klang Valley. The finding of analyses shows that generally 51.54% of Malaysians have the basic financial knowledge and this figure drops to 37% for advance financial literacy .The results indicate that government should provide an appropriate financial education for middle young age and above individuals. There is no clear difference between the level of financial literacy between male and female. Moreover, Indians needs more financial education service rather than Malay and Chicness races. Also, individuals with low level of income suffer from a low level of financial literacy.