KUALA LUMPUR: Collaboration among financial institutions, the private sector and government agencies is essential to promote financial awareness and basic financial knowledge among the public, Finance Minister II Datuk Seri Amir Hamzah Azizan said.
Financial literacy goes beyond simply knowing how to save or invest, he added. It involves understanding the complexities of managing finances to secure long-term stability.
"As reported by Bank Negara Malaysia, 54 per cent of our population has less than three months' worth of savings if they were to lose their income. This figure signals a gap in financial preparedness, but how do we bridge this gap?
"The answer lies in awareness and education for all Malaysians; a long-term solution that not only supports individual prosperity but also strengthens the fabric of our national economy," he said at FWD Insurance Bhd's "Focus for the Future" event today.
Amir Hamzah said financially literate individuals are better equipped to manage risks, make sound investments, manoeuvre unexpected turn of events and plan for the future.
Such capabilities contribute to a more resilient economy, one that is less susceptible to external shocks.
"Improving financial literacy has profound economic implications. By equipping the younger generation with financial knowledge, we are laying the groundwork for a more prosperous Malaysia.
"The long-term implications of improving financial literacy will be seen in a more resilient workforce, a more financially secure population, and ultimately, stronger contributions to our national gross domestic product (GDP)," he added.
As such, Amir Hamzah said public-private partnerships are pivotal in expanding the reach and impact of financial literacy initiatives.
He added that as a member of the Financial Education Network and the Financial Industry Collective Outreach (FINCO), FWD can play an active role in creating awareness of financial literacy, especially among school children and youth.
As part of its support for the nation's socioeconomic growth, FWD is partnering with local organisations to expand financial literacy.
It announced several partnerships, including a collaboration with Bank Simpanan Nasional for the "Know Your Money" programme, which will provide financial education workshops to 5,000 primary school students nationwide by 2026.
The company also expanded its "JA SparktheDream" financial literacy programme to Malaysia, promoting economic and social inclusion among lower secondary students across eight markets.
Additionally, FWD, in partnership with ARUS Academy, will launch the "Fun(d) for Uni Life" initiative to benefit 10,000 university students in Malaysia by 2026, offering financial coaching and mentorship support.
FWD will also be working with the Ministry of Education through the Keramat District Education Office for "Bring Your Device to School", a pilot programme to ensure students are equipped with the tools necessary in today's age of digital learning.
As part of the initiative, the insurer will sponsor digital whiteboards and tablet devices to selected primary schools under the purview of the Keramat District Education Office.
FWD chief executive officer Aman Chowla said the company is investing in research partnerships to better understand the financial challenges and opportunities faced by Malaysians.
He stressed the importance of creating solutions that address current community needs while also considering future requirements.
"Our aim is to drive sustainable impact, from building basic financial awareness among primary school students, to providing financial coaching for tertiary education students who are about to step into the real world.
"This is an inclusive effort across ages," he said.