Malaysia launches National Strategy for Financial Literacy 2026-2030 (NS2.0)

NS2.0 comprises five strategic priorities designed to support Malaysians in managing their financial affairs at every stage of life, including promoting wise financial planning and preparation for retirement, fostering smart and responsible debt management, and securing a financial future with risk protection.

Prime Minister of Malaysia Anwar Ibrahim launched the Malaysia National Strategy for Financial Literacy 2026-2030 (NS2.0) and Financial Literacy Month 2025 on 3 October 2025 (Friday).

In an update on Friday, Bank Negara Malaysia (BNM) said the NS2.0 builds on the progress achieved under the first National Strategy for Financial Literacy 2019–2023 (NS1.0), setting a more forward-looking direction to further strengthen financial literacy nationwide. Derived by the Financial Education Network (FEN), it comprises five strategic priorities (SP) designed with the goal to support Malaysians in managing their financial affairs at every stage of life:

1. Promote wise financial planning and preparation for retirement
2. Foster smart and responsible debt management
3. Secure financial future with risk protection
4. Promote safe, confident and meaningful usage of digital financial services
5. Encourage investments for wealth creation

Here is a breakdown of each of the SPs for 2026 to 2030: 

Strategic priorities (SP)

1. Promote wise financial planning and preparation for retirement

BNM said substantial progress has been made in integrating financial education into the school curriculum, led by the Ministry of Education (MOE). A 2023 study involving 3,094 students showed encouraging results, with 77% and 64.1% demonstrating high levels of financial knowledge and positive financial attitude, respectively. However, only 17.6% of students exhibited strong financial behaviours, highlighting a need for more hands-on financial experiences.

This gap suggests that while students may understand financial principles in theory, they lack opportunities to apply them in practical, everyday settings, which are essential to reinforcing positive financial habits, and highlights an urgent need to address early financial habits, including good day-to-day money management, as well as instill longer-term financial planning skills as students, before they enter the workforce.

Recognising these gaps, the first SP will focus on advancing the following strategies:

• Driving lasting improvements in financial planning awareness, knowledge and habits across all life stages through leveraging behavioural insights, and
• Strengthening the financial literacy ecosystem to enhance access to and effective usage of financial planning resources and tools.

2. Foster smart and responsible debt management

Debt is a key component of personal finance, with individuals using various sources of debt such as credit cards, car loans, student loans and mortgages to meet their needs and goals. When managed wisely, debt can offer financial flexibility and opportunities. However, poor debt management can result in adverse long-term financial consequences, including financial stress, debt spirals and even bankruptcy.

Responsible debt management involves avoiding excessive borrowing, timely debt repayment, and engaging proactively with financial service providers if faced with repayment challenges. Fostering these habits is key to ensuring sustainable access to and usage of financing and requires adaptive strategies and coordination across multiple sectors.

The second SP will focus on the following strategies: 

• Improving debt management knowledge and practices for long-term financial health, and 
• Ensuring inclusive access to finance complemented with comprehensive advisory and support, particularly for the vulnerable and underserved segments.

3. Secure financial future with risk protection

Risk protection plays a vital role in safeguarding individuals and businesses from unexpected financial disruptions and vulnerabilities. These risks can arise from life-changing events, such as financial shocks, accidents, illnesses or death, natural disasters like floods, and pandemics that disrupt livelihoods. For many Malaysians – particularly lower-income households – the impacts of these events can be devastating, underscoring the urgent need for accessible and effective financial risk management and protection.

To address these gaps, it is crucial to empower Malaysians with a better understanding and appreciation for personal financial risk management and protection.

The third SP's focus will be on the following strategies:

• Increasing consumer awareness and understanding of risk protection and its benefits, nudging consumers towards responsible and optimal risk management, and 
• Improving access to and usage of microinsurance/ microtakaful, particularly for the vulnerable segments

4. Promote safe, confident and meaningful usage of digital financial services

Digitalisation is transforming financial services at an unprecedented pace, making transactions easier, faster and more widely accessible. From in-store payments and money transfers to online purchases, Malaysians are embracing digital methods that enhance ease and efficiency in managing daily finances.

This shift presents opportunities to reduce financial exclusion and contribute to better financial choices that can improve quality of life. Yet, these benefits can only be fully realised if all Malaysians are equipped with the right knowledge and skills to use digital financial services (DFS) safely, responsibly and confidently.

While the digital financial ecosystem creates many new opportunities, it also poses risks such as scams, fraud, and cybersecurity threats.

To address these risks, the National Scams Response Centre (NSRC) was established in 2022 as a dedicated, multi-agency platform to combat the growing number of online financial fraud cases and cybercrimes. The NSRC acts as a one-stop centre to coordinate scam reports, assist victims, and block stolen funds through close collaboration with enforcement authorities and financial institutions. It also plays a critical role in strengthening public awareness and preventive measures to bolster financial safety in the digital space.

The fourth SP will focus on the following strategies: 

• Enhancing DFL while cultivating cybersecurity awareness and promoting informed usage of redress and advisory, and
• Promoting greater usage of DFS to deepen financial inclusion.

5. Encourage investments for wealth creation

As consumers become more financially aware, many are also beginning to consider the wider impact of their financial decisions. There is growing interest in aligning investments with personal values, particularly among those who are more conscious of environmental and social issues. This shift is contributing to more demand for sustainable and responsible investment (SRI).

In light of this, making SRI more understandable and accessible will enable more Malaysians to grow their wealth while contributing to the Sustainable Development Goals (SDG). To encourage greater participation in investments across various platforms and offerings, the last SP will prioritise the following strategies:

• Promoting greater awareness on the availability, risks and benefits of investment products,
• Facilitating greater adoption of digital investments, and
• Broadening SRI product awareness to encourage greater participation.

Despite steady strides since the introduction of NS1.0, of the Malaysia Financial Literacy and Capability (MYFLIC) Index rising from 57.1 in 2018 to 59.1 in 2024, largely driven by increased awareness of financial concepts and products, nonetheless, notable gaps remain. Hence, the fruition of NS2.0, designed to deepen financial capabilities and bridge these persistent divides.

Gaps in financial literacy in Malaysia

Emerging trends shaping the financial literacy landscape

Looking ahead, the FEN identified several emerging trends reshaping the financial literacy landscape to transform how Malaysians manage and spend their money, to create new demands for financial education that keeps pace with evolving priorities and risks.

• New growth angles in financial services
  • The rise of digital natives, coupled with rapid advancements in data analytics and AI, is driving demand for more personalised financial services. More digital-savvy consumers, especially among the younger generations, expect seamless, customised financial offerings that align with their unique needs and preferences. Demographic shifts, including an ageing population and growing awareness of the need for equal opportunities for women and men, highlight the importance of more inclusive and targeted financial literacy resources that support long-term financial planning and promote financial independence.
  • Further, growing awareness of climate change is encouraging consumers to make financially and environmentally responsible choices. According to the FCI Survey 2024, more than half of the Malaysian population expressed concerns over the implications of climate change. These developments present an opportunity to promote financial literacy that is not only inclusive, but also responsive to emerging societal values.

• Alignment with national priorities and broader development goals
  • Enhancing financial literacy is essential to advancing Malaysia’s development priorities at the national level. This includes contributing to Malaysia’s national development plans by ensuring Malaysians have the financial capabilities to meaningfully participate in and equitably benefit from economic growth. It also aligns with the Financial Sector Blueprint 2022 – 2026, which focuses on shaping confident and capable financial consumers that take charge of their financial futures.
  • Financial literacy is a key enabler for Malaysia’s progress toward the SDGs, supporting 10 out of 17 SDGs, including those related to poverty reduction, equal opportunity and responsible consumption. By empowering individuals to understand the sustainability and ethical impact of their financial decisions, financial literacy can foster responsible choices that support both personal well-being and Malaysia’s sustainable growth.

• Impact of heightened uncertainty
  • Global events such as globalisation, trade war and frictions, geopolitical tensions and the COVID-19 pandemic have created a more uncertain environment, threatening job losses, increasing business challenges and work pressures, and contributing to financial uncertainty for individuals.
  • Such conditions can lead to stress and anxiety, often resulting in short-term, reactive financial behaviours that could undermine long-term financial wellbeing. Financial literacy helps individuals manage these pressures with greater confidence and clarity, by equipping them with the skills and knowledge to make informed, rational decisions that prioritise longer term stability.

In a written message featured in the report, PM Anwar shared that NS1.0 laid a strong foundation that brought the public and private sectors together under a shared aspiration: to uplift the financial knowledge and capabilities of Malaysians. The enhanced NS2.0 aims to empower Malaysians from all walks of life to navigate today’s financial environment with confidence and competence.

"NS2.0 aspires to help people manage debt and risk more effectively, build financial resilience for the unexpected, promote safe and informed use of digital financial services and support vulnerable communities so that opportunity is shared by all," he added. 

During his opening address at Sasana Kijang, Kuala Lumpur, Governor Abdul Rasheed Ghaffour commented that with the launch of the strategy, its success is not determined by a single document.

"Its success depends on our collective action in instilling understanding, changing attitudes, and cultivating healthy financial practices in the daily lives of the people. More financially literate individual becomes another stepping stone towards a stronger Malaysia."

"Every family that is disciplined in managing finances is the foundation stone of a more prosperous society. And every small business that we carry out together will merge into a big wave that is able to raise the name of the country to a higher level."

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Lead image / Bank Negara Malaysia Facebook

Infographics / Malaysia National Financial Literacy Strategy 2026-2030 (NS2.0)