Malaysia’s cashless leap needs a financial literacy rethink — Amirah Shazana Magli

Malaysia has rapidly embraced digital payments, with 18.4 billion e-payment transactions in 2025, a 25% increase from the previous year. The average Malaysian made 538 e-payments annually. While this progress is commendable, it brings to light the need for a reassessment of financial literacy in tandem with digital adoption. Scams resulting in RM2.8 billion in losses in 2025 were predominantly due to authorized scams, indicating a deeper flaw in financial education.

Financial education has traditionally emphasized knowledge, such as budgeting and investment risks, but the digital age has altered consumer decision-making. Consumers now receive financial choices through notifications, QR codes, shopping apps, and AI recommendations. While being digitally active doesn't equate to financial capability, the speed of digital finance can pose behavioral vulnerabilities.

Fraudsters exploit urgency, authority, familiarity, and fear of missing out to bypass consumer judgment. Thus, financial education must evolve to teach decision-making alongside knowledge. Key questions include verifying the authenticity of offers, assessing the full financial consequences, and determining the potential repercussions of wrong decisions, especially in the age of AI.

Financial education should shift from knowledge delivery to decision training, exposing consumers to real-life financial situations to ensure knowledge translates into sound judgments. While consumers cannot fully prevent vulnerabilities in a fast-paced digital ecosystem, industry stakeholders must strengthen safeguards, product design, fraud detection, and consumer redress mechanisms.