Wednesday, February 18, 2009

Funny Statement of the month- CITI Bank Says Malaysian Not Saving Enough and need to enhance their financial literacy.

Pardon me dear readers, while this statement means well, I cannot stop laughing at the irony of it all. Pay attention to the last para.

The last time I check, somebody was bailout to the tune of 300 billion (link here). They are all financially literate mind you! But may be they need a refresher course in financial management so that they are more dicipline and has good financial management skill.

have a look at this news by BERNAMA (link here).

According to the Citibank’s Financial Quotient 2008 (Citi Fin-Q) survey, few Malaysians are aware of the benefit of saving and fewer have enough set aside for the future.

Citibank's head of segment and marketing, retail bank, Timothy Johnson said the survey revealed that a majority of Malaysians reported that they saved up to 20 per cent of their monthly income — excluding the 11 per cent in the Employees Provident Fund — and 12 per cent said they don't save anything at all.
"Asked where their monthly income went, 38 per cent reported that less than 10 per cent of it went for non-essentials," he told a media briefing on the findings of the survey today.

The Citi Fin-Q survey comprised 500 online interviews of 40 questions each, rolled out to determine the level of understanding among Malaysians about their personal finances and financial practices.
Johnson said the survey highlighted that Malaysians might not necessarily be prepared to face a financial meltdown should they face job losses or retrenchment.

"Only two in five or 39 per cent of the candidates interviewed actually saved. Less than one in three Malaysians or 28 per cent made and committed to a monthly budget," he said.
"When asked how long their current savings would last in the event of a job loss but with continued regular expenses, one in five indicated it would be for only four weeks," he added.
Johnson said the findings are quite worrying and believed that a lot more needed to be done to ensure Malaysians are truly financial savvy.

To ensure enough savings, Malaysians need to be disciplined and have good financial management.

"I believe Malaysians should provide additional focus on developing and enhancing their level of financial literacy, more so given the current challenging environment," he added. — Bernama

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