This Week’s Top Headlines

i) 7 in 10 Malaysian millennials are living paycheck to paycheck, according to the 2023 Gen-Z and Millennial survey conducted by Deloitte. Other alarming findings show that these generations are struggling with the rising cost of living and facing persistent burnout and stress.

ii) The dollar's upward momentum against the ringgit has come to a halt, as it fell to RM4.593 during Friday's close. Prime Minister Anwar denies any responsibility for the weakness of the ringgit and attributes it to various international constraints.

iii) After two weeks of nail-biting uncertainty, Joe Biden has signed the debt limit bill, which effectively increased the debt ceiling of the United States. The Treasury Department had issued a warning, stating that if Congress failed to take action by Monday (June 5), America would be unable to meet all its financial obligations.

Scroll down to read the details.

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Gen Zs and millennials are facing new challenges that hinder their capacity to plan for their future.

The Deloitte 2023 Gen Z and millennial survey aims to explore the attitudes on work and the world around these generations.

Though the pandemic has receded, Gen Zs and millennials are confronted with ongoing challenges that impact their daily lives. These include the cost-of-living crisis resulting from multi-decade high inflation, the Ukraine war, and the escalating concerns related to mental health.

Conducted online, the survey gathered feedback from over 22,800 Gen Z and millennial respondents representing 44 countries. Among these participants, 303 were Malaysians.

Here are the key points of the survey:

• 7 in 10 Malaysian millennials are living paycheck to paycheck.

• Cost of living is the top concern for Malaysians.

• Work-life balance is crucial, but few have it.

• Part-time jobs have become the norm.

• Remote work is much more common today, but there is still a gap between those who have this privilege and those who want it.

• Persistent burnout and stress.

Read the breakdown of each key point below.

70% of Malaysian millennials and 65% of Gen-Zs are living paycheck to paycheck.

The findings were significantly higher than the global averages of 52% and 51%, respectively.

Fresh grads who are newly employed or have remained in their jobs for less than 2 years are more likely to face this issue compared to those who have worked for more than 5 years.

Cost-of-living is the top concern for young Malaysians.

Half of millennials and almost half (45%) of Malaysian Gen-Zs are anxious about the rising cost of living, compared to the global averages of 42% and 35%, respectively.

Other concerns include economic growth (27% for millennials) and unemployment (18% for Gen-Zs).

Work-life balance is crucial, but few have it.

While most Gen Zs and millennials agree that work is central to their identity, there must be a balance.

However, only 32% of Malaysian Gen-Zs and 21% of millennials said they have this.

The global data paints an equally worrying picture, as less than a third of young employees feel satisfied with the flexibility at work.

Part-time jobs have become the norm.

Despite the desire for better work-life balance, 46% of Gen-Zs and 37% of millennials are working part-time to cover their necessary expenses.

These figures are notably higher in Malaysia, at 60% and 62%, respectively.

The need for better pay continues to drive employees to other jobs.

Many of these side jobs leverage technology and social media platforms, including selling products or services online and engaging in gig work like food delivery or ride-sharing apps.

Remote work is much more common today, but there is still a gap between those who have this privilege and those who want it.

Almost one-third of Malaysian Gen-Zs and millennials desire the freedom to choose whether to work from home or in office.

Looking at the global data, only 22% of Gen Zs and 20% of millennials have this flexibility.

Persistent burnout and stress.

39% of millennials and almost half (46%) of Gen-Zs feel stressed or anxious all or most of the time.

The percentages vary on different groups, as the survey found that women, LGBT+, ethnic minorities and people with disabilities are more prone to experience persistent burnout and stress.

These figures have remained high even as Covid receded, as new challenges such as the cost-of-living crisis, unemployment, and geopolitical tensions emerged.

What if I’m living paycheck to paycheck? What can I do?

Create a budget. Regardless of whether you adhere to the 50/30/20 rule or opt for a different budgeting strategy, the ultimate goal is to have a comprehensive overview of your monthly spending. This knowledge enables you to determine which expenses can be reduced or eliminated entirely.

Prioritize debt repayment. Develop a comprehensive plan and focus on tackling high-interest debts first. Restructure them with your bank to lower the rates. Take note of different strategies, such as the Snowball or Avalanche method, and select the one that aligns best with your financial situation.

*If you’re struggling with debt, head over to Agensi Kaunseling Dan Pengurusan Kredit (AKPK) for more advice.

Seek financial assistance or advice. Rather than doing things all by yourself, consider reaching out to a financial advisor or counselor who can provide guidance tailored to your specific situation.

PM Anwar: Ringgit’s decline is not my fault.

PM Anwar denied that the ringgit’s weakness is due to the absence of a full-time Finance Minister.

He explained that the fall in the ringgit was due to various factors including international constraints.

"Tell the person who suggested it, read the economic and financial report instead of the PAS report," he said on Thursday.

Bank Negara Malaysia (BNM) attributed the decline to global economic uncertainty, such as the US debt ceiling issue and pressure on both the US and European banking sectors.

The central bank reminded that the performance of the ringgit does not reflect Malaysia’s economy, which is expected to continue to grow four to five percent this year.

Ringgit recovers slightly to RM4.5755

After a disastrous May, which saw the ringgit slump to a 6-month low of RM4.635 against the US dollar and an all-time low of RM3.428 against the Singapore dollar, the local note has regained strength amid improved sentiment.

At the time of writing, the USDMYR pair is trading at RM4.5755 while SGDMYR has fallen to RM3.3884.

The ringgit’s rebound can be attributed to the settlement of the US debt ceiling, which plagued the markets with uncertainty for the past three weeks.

In a vote on Thursday (June 1) evening, the US Senate approved a bill to raise America’s debt limit through January 1, 2025.

The Treasury Department warned that it would be unable to pay all its bills on Monday if Congress had failed to act by then.

Joe Biden signed the bill into law to avert the United States’ first-ever default on its $31.4 trillion debt on Saturday.

Another reason for the ringgit’s recovery is the expectation that the Federal Reserve will pause interest rate hikes in June after a jump in the unemployment rate, according the May employment report.

Though the recent report blew through expectations as employers added 339,000 jobs, the jobless rate rose to 3.7% from 3.4% - the largest since April 2020.

Outside the Covid pandemic, it was the biggest jump since 2010, reflecting a drop in household employment and a rise in the workforce.

Wage growth moderated last month, which should offer some comfort to Fed officials battling to bring inflation back to the U.S. central bank's 2% target.

The confirmation of a rate pause during the Fed’s June meeting will largely depend on the upcoming CPI data, to be released on June 13.

That’s all for this week’s newsletter!

*This issue was written at 11.15 AM on 5th June 2023 and completed at 2.30 PM the same day. To get early access to our newsletter, be our patron for as little as $1/month!

Disclaimer: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this newsletter is solely the opinion(s) of the publisher.