The Employees Provident Fund (EPF) revealed that the people in the states of Kelantan, Terengganu and Sabah have the lowest financial literacy rates in Malaysia.
The EPF Eastern Region Director, Rahmat Ali, stated that the study conducted in 2022 took into account several factors, including limited exposure to financial management and savings.
The results of the study showed that the level of financial literacy in Kelantan (15%), Sabah (16%) and Terengganu (17%) was lower than Kuala Lumpur which recorded the highest rate of 41%.
He also explained that this situation was likely due to the habit of saving money in less productive places such as at home or in banks that offer low returns.
Rahmat said that if the level of financial literacy increased, the people were likely to choose savings instruments that offer higher returns such as the EPF.
The statement was made when he attended the State Media and Stakeholder Engagement Ceremony yesterday.
The EPF is currently focusing on efforts to increase community awareness, especially the self-employed who do not officially make contributions through employer deductions.
