Ahmad Fikri Ahmad Fisal
Senior Research Associate
Fikri is a Senior Research Associate at PNBRI. His major interests include history, political economy, inequality and housing. His past publications focused on the ownership and control of government-linked companies in Malaysia. He holds a Bachelor of Science in Actuarial Math and History from the University of Michigan, and a Master of Development Studies from Universiti Malaya.
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Anis Farhana Amran
Research Associate
Anis is a Research Associate at PNBRI. Her research interests lie in education equity and gender inequalities, particularly how structural barriers intersect to shape access to opportunity. She is especially interested in how these dynamics influence education-to-labour market transitions and broader questions of inclusive development. She holds a BA in Philosophy, Politics and Economics from the University of Southampton. Anis aspires to contribute towards a Malaysia that nurtures and uplifts diverse talents, paving the way for all to realise their potential.
[email protected]Abstract
There have been multiple reports on the issue of low savings among Malaysians. Through the Financial Education Network (FEN), several government-related agencies and companies have collaborated to enhance Malaysians’ savings and financial behaviour through financial education programmes. Literature findings, however, suggest that increasing financial literacy alone may not be sufficient to improve savings behaviour. Other factors, such as financial socialisation, also play a critical role.
Financial socialisation refers to the influence of agents, such as family, peers, education, and media, on one’s financial attitudes and behaviour. The dominant theory, family financial socialisation highlights the role of parents in shaping long-term financial values. Studies also show that financial socialisation varies across communities and is shaped by factors such as gender, age, and ethnicity. Understanding these differences is vital for crafting targeted financial interventions.
Given the emerging nature of the financial socialisation field, several gaps have been identified. Firstly, there is yet a representative, nationwide study on financial socialisation in Malaysia. Secondly, notable financial socialisation frameworks are primarily based on studies conducted in developed countries, which have a different cultural context from Malaysia. Thirdly, there is a scarcity of studies on how sociodemographic factors, particularly race, influence financial socialisation in Malaysia.
This paper, therefore, addresses two broad questions that deserve attention:
- How do financial socialisation agents influence savings behaviour among different sociodemographic groups in Malaysia?
- How do sociodemographic factors influence savings behaviour within these groups?
A pilot survey by PNBRI revealed two key findings: significant variation in responses across ethnic groups, and the prominent role of religion, especially among the Bumiputera, which has been underexplored in literature.
Although not nationally representative, the pilot findings suggest the need for a larger, more robust study. A nationwide investigation can help design culture-specific policies to enhance savings behaviour and address wealth disparities among Malaysia’s diverse racial groups.