Reality Check: Why Gen Z in Malaysia Are Feeling the Financial Burn

Let’s not sugarcoat it—money is tight, and for many Malaysians, the dream of financial freedom feels more out of reach than ever. Sun Life Malaysia’s latest Asia Financial Resilience Index makes that painfully clear. Titled Balancing Today’s Needs and Tomorrow’s Goals, the report offers a sobering look at how people across the region, including right here at home, are navigating an economic landscape riddled with inflation, rising costs, and dwindling savings.

The good news? A few folks think they’re financially secure. The not-so-good news? That sense of security is shaky at best—especially among Gen Z. In stark contrast to the 66% of Baby Boomers who report feeling financially safe, younger Malaysians are emerging as the most financially vulnerable group surveyed.

This isn’t just a generational pity party. Over 6,000 people across Malaysia, Hong Kong, the Philippines, Indonesia, Singapore, and Vietnam were surveyed—and the trends are clear. What’s plaguing Malaysians isn’t just a fear of the future. It’s the grind of the now.

The Present Is Eating the Future

Let’s talk priorities. A staggering 92% of respondents are still reeling from the impact of rising prices. Nearly half—43%—say this has seriously affected their ability to keep up with monthly expenses. It’s no wonder that day-to-day survival has taken centre stage: 62% of Malaysians rank managing daily expenses as their top financial goal. That’s up from 55% last year.

And guess what’s fallen dramatically down the priority list? Retirement planning. Once the second most important goal for Malaysians, it’s now seventh. Seventh. When asked about their long-term planning horizons, more than half (56%) admitted they don’t have a financial plan extending beyond 12 months. Only 8% are thinking more than 10 years ahead.

The takeaway? Malaysians are stuck in short-term mode, and the consequences could be long-lasting.

“Many Are Struggling with Daily Expenses”

“While some Malaysians feel financially secure, many are struggling with daily expenses and lack of long-term financial planning,” said Ho Teck Seng, President & Country Head at Sun Life Malaysia. “The situation is made worse by increasing inflation, which especially impacts the younger generations. As a trusted insurance and takaful company, we recognise the important role we play in helping Malaysians improve their financial literacy so they can manage their money better, save more, and reach their future goals.”

The index doesn’t just highlight a knowledge gap—it points to a full-blown crisis of financial resilience. Emergency savings have crept up the priority list, now sitting in second place at 41%, which says a lot about how uncertain Malaysians feel about the road ahead.

What’s Being Done About It?

Sun Life Malaysia isn’t just sounding the alarm—they’re stepping up their efforts. Off the back of their InsureLit Campaign 2024, the company is gearing up for an even more ambitious 2025. Think digital explainers, interactive roadshows, social-first resources, and a dedicated youth programme—all aimed at boosting financial literacy where it’s needed most.

The goal is straightforward: give Malaysians, especially Gen Z, the knowledge and tools to make smarter money decisions. Whether that’s starting an emergency fund, planning for retirement, or simply learning how to stretch a ringgit in today’s economy, it all adds up to better financial health down the line.

The Bottom Line

The Index doesn’t just reveal a gap between perception and reality—it calls attention to a culture of financial short-termism that could have lasting impacts. Inflation may not be going anywhere, but with the right information, support, and a serious shift in mindset, Malaysians—especially the next generation—might just find a way to future-proof their finances.

Because let’s face it: living for today shouldn’t come at the cost of tomorrow.