Nearly 4 in 10 M’sian workers have no savings buffer

A recent global study has revealed that nearly four in ten Malaysian workers lack a savings buffer to rely on during unexpected financial difficulties. Despite Malaysian workers demonstrating strong overall personal resilience compared to the global average, their financial resilience was found to be the weakest area. The study, conducted by Zurich Insurance Group in collaboration with Oxford Research & Development Partners, surveyed 11,175 working-age adults across 16 countries, focusing on five resilience domains: psychological, physical, social, financial, and digital.

Malaysian workers scored 4.26 on the personal resilience index, surpassing the global average of 4.11 but trailing just behind the highest-ranked country's score of 4.38. While 39% of Malaysian respondents reported having no savings buffer, a resilience score above 4.5 placed them in the "thriving" category. However, the study highlighted that financial resilience remained a significant weak spot for Malaysian workers, with confidence in insurance or takaful protection being one of the lowest-rated areas.

Interestingly, Malaysians' financial resilience was somewhat better than the global average of 49%, with only 51% of respondents feeling confident in managing finances for a few months without income. The research highlights that financial resilience extends beyond accumulating wealth; it encompasses the ability to absorb setbacks such as sudden income loss, unexpected expenses, or caregiving responsibilities without being severely affected.

The study also found that Malaysians scored strongly in adaptability, particularly in motivation to learn new skills, which was among their highest-rated measures. However, the paradox lies in the fact that while Malaysians appear adaptable and eager to learn, a substantial portion remains financially vulnerable when faced with unexpected challenges. The findings emphasize that financial resilience is crucial for maintaining overall coping abilities during life's uncertainties.