PETALING JAYA: With the life expectancy for Malaysia now at 76.6 years, coupled with inflation and rising living costs, it is crucial to be equipped with financial awareness and literacy as early as possible.
Securities Commission Malaysia (SC) executive director and general counsel Yew Yee Tee said one of the nation’s biggest challenges in Malaysia is the lack of sufficient retirement savings.
She said this issue has become even more pressing in the post-pandemic world, compounded by demographic shifts and economic uncertainties.
Yew said that based on the Employees Provident Fund basic savings quantum, retirees should have at least RM240,000 to support 20 years of retirement. However, in 2023, only 33% of members met this target.
Speaking at SC’s InvestSmart Fest 2024 recently, she noted a recent SC study in which respondents were asked if their savings were sufficient for retirement and how long it would take to sustain them after retirement.
The findings showed 54% believed that their current savings were insufficient for retirement. Only 16% indicated they would have enough for more than 20 years, while a worrying 18% stated it could only sustain them for five years or less.
Touching on scams, unlicensed activities and mule bank accounts, Yew said that with greater technological advancement, the SC also see the proliferation of scams and unlicensed activities.
“Scams and unlicensed activities continue to be a growing concern. In 2023, the SC received 3,262 public complaints and enquiries on various scams and unlicensed activities, a 321% increase from 2019.
“As of Q3 of 2024, we have already received 3,380 complaints and enquiries, an increase of 28% compared to last year, and these numbers involve new and sophisticated fraudulent schemes using deepfake technology and ever-changing modus operandi.
“The positive side to this is that we also see greater awareness and scepticism among the public, where many of these complainants and enquirers coming forth to the SC have not fallen victim to these scams compared to previous years,“ she told delegates at the event.
Yew said most scams share a common element – the use of mule bank accounts.
Mule accounts involve victims being persuaded to rent out their bank accounts, which scammers use to receive and move ill-gotten funds illegally.
“Therefore, I advise you never to allow your bank accounts to be used as mule accounts. The monetary reward offered is not worth the while. Since 2022, the SC has acted against 19 mule account holders for receiving proceeds of unlawful activities, where enforcement actions were taken, including the imposition of fines in hundreds of thousands,“ Yew said.
She also touched on “finfluencers”, where many turn to social media and other digital platforms for information
and advice on investments.
Yew said relying on finfluencers without investment knowledge and independent due diligence comes with risks.
“They may not be knowledgeable, and in some cases, their activity may require a licence from the SC, and they are not licensed. Investors need to be aware of the risk of accepting financial advice from social media posts and influencers/finfluencers.
“While social media has become an important platform for investors to share both the positive and negative experiences with brands, it can be dangerous to take financial advice from unknown or unlicensed individuals,“ Yew said.
