Digitally active Malaysians have good financial literacy but security remains elusive for many, study finds

KUALA LUMPUR, June 10 — Digitally engaged Malaysians have relatively strong financial literacy, but many still struggle to turn that knowledge into long-term financial security, a new report has found.

The report, prepared by Monash University Malaysia in collaboration with Versa and AHAM Asset Management, found that the average financial literacy score among respondents was 75 out of 100, while financial knowledge scored higher at 82 out of 100.

Meanwhile, the average financial well-being score stood at 75 out of 100.

“What surprised us most was not the level of financial knowledge, but the gap between knowledge and outcomes,” said Dr Mirzet Šeho, Senior Lecturer in Finance at Monash University Malaysia and lead author of the report.

“Many respondents understand key financial concepts and are highly motivated to improve their financial futures, yet translating that knowledge into consistent financial behaviours and long-term financial security remains a challenge,” he said.

The report analysed anonymised responses from 4,004 Versa platform users collected in December 2025, using the OECD/INFE Financial Literacy Framework to assess financial knowledge, behaviour, attitudes, digital financial engagement, financial well-being and retirement readiness.

The study also found that digital finance has become a core part of personal financial management, with 88.3 per cent of respondents regularly using digital payment tools and 77.3 per cent using digital banking applications for savings.

Another 58.1 per cent used digital investment platforms, while 43.1 per cent used the Employees Provident Fund mobile application.

However, nearly 60 per cent of respondents cited fraud, scams and cybersecurity risks as their biggest challenge when using digital financial services.

The report recommended stronger digital consumer protection, better retirement planning support and financial tools that help users build positive financial habits, especially among vulnerable groups.