KUALA LUMPUR: Covid-19 has provided an unexpected boon to Malaysian millennials' (those aged 25 to 44) finances.
Standard Chartered Malaysia managing director and chief executive officer Abrar A. Anwar said Malaysian millennials were indicating a sense of responsibility with their finances in the aftermath of the Covid-19 pandemic.
Abrar said there was no question that the crisis was a formative phenomenon that would shape this generation for the rest of their lives.
"Millennials are passionate about their causes and not afraid to push the envelope.
"Through our core business of banking, we play a crucial role in providing financial advice and services that will empower them to plan for an increasingly unpredictable future and build their versions of a better society," he said.
According to StanChart's latest global survey, 74 per cent of millennials in Malaysia had found managing their money more difficult since the start of the Covid-19 outbreak.
They are 107 per cent more likely than those over 45 to feel they do not have control of their bank balance.
Meanwhile, the survey said 23 per cent reported that their borrowing had increased in the last month, versus 15 per cent of those aged over 45.
Despite these significant challenges, it said millennials were the most likely generation to be in active pursuit of their long-term financial goals.
"A total of 34 per cent of Malaysian Millennials are saving for a major purchase such as a new car or home compared to 20 per cent of those over 45.
"Meanwhile, 45 per cent are trying to save more for retirement compared to 44 per cent of those over 45," it said.
To meet these ambitions, half of Malaysian millennials want to better track and budget their spending (37 per cent globally), 61 per cent want to change their budget for daily spending and 28 per cent started using a new money management or budgeting app since the pandemic began.
Meanwhile, it said 62 per cent of those who had yet to start using a money management or budgeting app, planned to do so in the next three years.
The Malaysian millennials are 340 per cent more likely than those over 45 to have started a digital piggy bank or a coin jar, 65 per cent more likely to have started using a money management or budgeting app, and 150 per cent more likely to have started using a savings or investment app for the first time during the pandemic.
Besides, 67 per cent had a positive experience in using new ways to manage their money since the start of Covid-19.
"This embrace of new technology to help manage money amid the current economic turmoil may be why millennials are more confident than any other generation that they can achieve their long-term financial goals," said the survey.
The survey also found that 36 per cent of millennials in Malaysia were more confident than they were before the pandemic started (46 per cent globally).
In contrast, only 21 per cent of Malaysians over 45 feel more confident they'll reach their financial goals (31 per cent globally), with those over 55 the least confident about achieving their financial goals since the Covid-19 outbreak began, the survey said.
Meanwhile, across all the generations, the pandemic has made people more careful with their saving and spending and less likely to splurge.
"Over half of the respondents (54 per cent) said they would save the cash in case of an emergency expense, while – in contrast - only 3 per cent said they would use the money for a foreign holiday," it added.