Financial literacy skills vital to empower and uplift women's livelihood

THE National Financial Literacy Strategy 2019-2023 plays a role in increasing Malaysians' financial literacy.

Financial literacy is the ability to understand the implications as well as the extent to which an individual acts to ensure that his finances are managed as well as possible. It is an important skill for people of all ages.

A study conducted by the OECD International Network of Financial Education, the Credit Counselling and Debt Management Agency (AKPK) and the Malaysian Financial Planning Council, found the level of financial literacy among Malaysians had yet to reach a satisfactory level from 2015 to 2018.

According to the Financial Education Network's 2019 findings, approximately 33 per cent of Malaysians have limited financial knowledge. Furthermore, it was reported that more than half of Malaysians have difficulty accumulating a RM1,000 emergency fund. This situation occurs among Malaysians regardless of gender.

When faced with a loss of income as a result of a crisis, however, women are more likely than men to fall into poverty in modern society. For example, in the case of the Covid-19 pandemic, or when there is a divorce or the death of a partner, women are the most economically impacted.

In fact, their involvement in the dynamic employment sector as a result of the responsibility of caring for children and families causes the majority of them to leave the workforce.