In a report today, SC noted that through its recent Youth Capital Market Survey 2022, it was revealed that Malaysian youth spent much of their income on food, household expenses, and debt repayment – leaving them with little for savings or investment.

The report also found that respondents prioritised setting aside their income for emergencies and for expenses on children or family, and to keep up with their appearance.

“Controlling their expenses, for example, putting a limit on eating out, shopping, and travel makes them feel that they are unable to enjoy the fruits of their labour,” it said.

Lack of awareness of capital market products over non-capital market products such as insurance, Tabung Haji, and fixed deposits also contribute to the low participation.

Only 3% of the respondents fell into the high-risk appetite category, while 97% were medium to low risk, it said.

It added that the low-income earners lacked the sufficient surplus for investment after they had set aside cash for emergencies, while those with a higher income were more inclined to invest their additional funds.