A financial survey has recently revealed that middle-income earners in Malaysia are feeling the pinch in their finances compared to lower-income groups.
Financial comparison website RinggitPlus, in its annual financial literacy survey, found that Malaysians earning between RM5,000 and RM10,000 a month are “slipping” in terms of their “savings power”. This downward trend was not observed in other income groups.
According to the Malaysian Financial Literacy Survey 2025, 39% of Malaysians managed to save less than RM500 per month, while the proportion of those saving between RM1,001 and RM1,500 monthly dropped to 23%, down from 29% in 2024 — reflecting the financial squeeze faced by middle-income earners.
Furthermore, the survey found that only 27% of Malaysian middle-income earners could sustain themselves for more than six months on savings alone, down from 32% the previous year. However, other income groups did not show a similar decline.
On a positive note, the RinggitPlus survey recorded that 64% of Malaysians have started planning for their retirement and exploring investment opportunities, representing a 4% increase from 2024.
Notably, 55% of those earning below RM2,000 showed awareness of the issue, while middle-income earners with salaries between RM5,000 and RM10,000 exhibited “little change” in awareness.
The survey also noted an increase in confidence regarding Employees Provident Fund (EPF) savings, with 22% of Malaysians believing their EPF savings are sufficient — marking a 3% rise from last year.
“The uplift is broad-based across income groups and generations, and may reflect improving financial education and more positive sentiment about retirement readiness,” the survey stated.
Additionally, the RinggitPlus survey revealed that 40% of Malaysians admitted they do not know where to start with their retirement planning and investments, a slight improvement from 45% last year. This indicates that efforts by the government and industry partners to enhance financial literacy may be making a difference.
The survey covered 3,113 respondents aged 18 and above from across the Central, Southern, Northern, and East Malaysian regions. It was conducted in Bahasa Malaysia, English, and Mandarin to ensure broad representation.
