On Sunday (13 April), I had the pleasure of hosting Yuen Tuck (YT) Siew, CEO of RinggitPlus, for a conversation on the state of financial literacy in Malaysia.

We focused on the RinggitPlus Malaysian Financial Literacy Survey (RMFLS), an annual study that surveys over 3,000 Malaysians on topics such as their financial preparedness, monthly savings habits, and overall money management.

Our discussion highlighted several key insights from the latest survey, shedding light on where Malaysians stand today and what still needs to be improved.

Q1: The 2024 survey pointed out that only 33% of Malaysians managed to set aside RM500 per month. Why do you think it is so difficult for citizens to save?

I believe it really depends on who you are and what you want out of life. If your goal is to save more, you have to be prepared to make certain sacrifices.

Just look at those in the FIRE (Financial Independence, Retire Early) movement—while it might seem extreme, they're intentionally giving up short-term comforts in exchange for long-term freedom.

I remember you once shared a powerful post on Instagram about a housewife managing a family of five. Her husband, the sole breadwinner, earns just RM1,500 a month. Yet, she still manages to save RM200 to RM250 monthly.

When you break down her budget, it’s clear that every ringgit is allocated strictly to essentials. Her discipline and resourcefulness are a testament to how much can be achieved with limited means—and a strong mindset.

Q2: What about our low income versus other countries? Does it play a role in our low savings?

I don’t believe income is the sole factor when it comes to saving. If you refer back to the case study of the family earning just RM1,500 a month, it clearly shows that it’s possible to save—regardless of how much you make. It all comes down to your mindset, your willingness to make sacrifices, and your ability to cut out non-essentials.

While I don’t have the exact data to compare Malaysia’s financial standing with other countries, here’s something to keep in mind: earning more overseas doesn’t automatically mean you’ll save more.

In many developed countries, the cost of living is significantly higher—rent, food, transportation, and even basic services can be much more expensive. So even if your income is higher, your expenses might be too, which could leave you with more or less the same at the end of the month compared to living in Malaysia.

Q3: What about BNPL (Buy Now Pay Later) services? Do you think they’re preventing people—especially young people—from saving more?

I see BNPL as a tool. And like any tool, it can either be used wisely or misused entirely.

Personally, I do use BNPL from time to time—mainly because some service providers offer attractive discounts. Plus, the 0% interest on monthly installments can be beneficial. If you’re financially savvy, you could even use that freed-up capital to generate some returns elsewhere—like parking it in a high-interest cash app—while gradually paying off the installments.

That said, I’m glad regulators are starting to step in, because the real danger of BNPL is when people start stacking up debt—using multiple services or even taking new loans just to pay off existing ones. That’s a slippery slope, and something you generally can’t do with traditional loans or credit cards due to stricter controls.

So to keep it simple: BNPL can be a smart tool if you know your limits and can leverage the benefits responsibly. But if it’s leading you to overspend on things you don’t need, then it’s definitely a red flag—and probably not for you.

Q4: How do you save and invest?

For me, the first thing I always consider is comfort. There's no point in following any financial advice if it doesn't suit your lifestyle or keeps you up at night. So while it’s important to research basic budgeting techniques, you need to find—or build—a system that works for you.

If I could turn back time to my younger days (I’m 42 now), I would’ve started Dollar Cost Averaging (DCA) into US equities or global markets much earlier. When you’re young, you can afford to take on more risk—and that’s when you should really be investing aggressively for the long run.

It doesn’t matter how much you DCA every month. What matters is consistently setting aside a portion of your income and putting it to work. You won’t see big results overnight, but over time, the compounding effect can turn small amounts into a substantial sum.

As for saving, I avoid letting my money sit idle in traditional bank accounts. Nowadays, there are plenty of cash apps and digital banks offering competitive returns with flexible access to your funds.

Many of these platforms have low entry points—some as little as RM1—and signing up only takes a few minutes. So there’s really no excuse not to make your money work for you, even in the smallest of ways.

Q5: How do you prepare for financial shocks?

I keep an emergency fund that covers 4 to 6 months’ worth of expenses, and I make sure it’s always accessible. That liquidity is key—you don’t want to be scrambling to cash out during a crisis.

It’s important not to get greedy and park your emergency savings in the stock market. Markets are volatile, and events like Trump’s recent tariffs are perfect examples of how quickly things can turn. You don’t want your emergency fund sitting in a portfolio that’s suddenly down 20% when you need it most.

Instead, store those funds in low-risk places that offer steady, reliable returns—things like high-yield savings accounts, digital banks, or money market funds.

Also, don’t forget about EPF. While it's primarily a retirement fund, Account 3 can now be tapped for emergencies. EPF is an amazing system—it's tax-free, offers solid dividends, and your employer matches your contributions. It’s one of the most underrated tools we have for financial security in Malaysia.

Q6: The financial literacy survey also found that 48% of those earning RM10k per month are living paycheck to paycheck. Why do you think this is the case?

Honestly, it was quite shocking to see that number. You’d assume that earning RM10,000 a month would give you some financial breathing room—but this data clearly shows that a high income doesn’t automatically mean you’re financially prepared.

Of course, for those earning less, things are tougher—you can only cut down so much on essentials before you're stuck eating Maggi every day. But this part of the survey sheds light on the other end of the spectrum: earning more doesn’t guarantee financial stability.

That’s because as your income increases, so does the temptation to upgrade your lifestyle. You start wanting a bigger house, a nicer car, fancier holidays... and before you know it, your expenses scale up just as fast as your income.

The real key is managing lifestyle inflation. If you can keep your expenses in check while your income grows, that’s when you’ll start seeing real savings and long-term financial security.

Q7: How do you prevent lifestyle inflation?

It really goes back to what I mentioned earlier—it depends on the individual and what you want in life at that point.

Yes, as your income grows, you should be saving and investing more. But that doesn’t mean you can’t enjoy life or treat yourself to a more luxurious holiday once in a while. The key is balance.

I think changing people’s spending habits is tough. But thankfully, in Malaysia, we have EPF as a form of forced savings. The good thing about earning more is that your EPF contributions also increase, which helps build a solid foundation for retirement—even if you’re not actively saving.

As for me, I always follow a “save and invest first” approach. Set your financial goals, automate your savings, and allocate your investments before spending on anything else. Use your bonuses wisely.

Back when I was in banking, I noticed a lot of the more financially disciplined bankers would keep most—if not all—of their bonuses instead of spending it. After a few years, the amount they’ve saved up is impressive. It really adds up.

Q8: What are the worst mistakes to make in your 20s?

One major mistake is not saving early. If you don’t build the habit in your 20s, you’ll likely have to work longer later in life. That’s not necessarily wrong—it’s just a trade-off. You might enjoy more freedom and fun while you’re young, but the cost is often delayed financial security.

The more serious mistakes are those that can leave lasting damage—like getting overleveraged or wrecking your credit score. Those can be really hard to bounce back from and may haunt you for years, especially when applying for loans or big financial commitments.

BNPL is one example that could lead to unsustainable debt if abused. But to be fair, people were making bad financial decisions long before BNPL existed. It all comes down to the user. Any credit product—BNPL, credit cards, personal loans—can be dangerous if used irresponsibly.

So the key is to learn early, be intentional with your money, and avoid decisions that trap you in long-term consequences.

This write up does not fully encapsulate the thoughts shared by the speaker. Any insights shared belong to YT. Any errors, assume it is my misinterpretation.

As always, I highly recommend you to watch the full replay: https://www.youtube.com/watch?v=E4swCnBgtAo

Siew Yuen Tuck is the CEO and co-founder of RinggitPlus, Malaysia’s leading financial comparison platform under the fintech group Jirnexu. An Oxford University graduate in Modern History, Siew began his career in investment banking at Citigroup and later joined a UK hedge fund before returning to Malaysia to address the lack of accessible financial information. He launched RinggitPlus in 2012 to empower Malaysians with transparent, user-friendly tools for comparing and applying for financial products.

⚠️ Disclaimer: Financial planning is a complex process and the speaker can only offer his general opinions.