Bernama reported EPF east region director Rahmat Ali as saying that the study, conducted in 2022, found that Kelantan recorded a financial literacy rate of 15%, followed by Sabah at 16% and Terengganu at 17%. Kuala Lumpur had the highest rate at 41%.

Rahmat said the study took into account several factors, including limited exposure to financial management and savings.

He noted that many respondents said they kept money at home or in low-return saving accounts, instead of investing in more productive savings instruments.

He said EPF was focussing on raising awareness among the self-employed, who often lacked formal contributions.

Facilities such as i-Saraan and i-Suri are available, with i-Saraan providing government incentives of RM500 annually for 10 years if contributors save RM2,500 each year.

“These contributions allow members to earn incentives and dividends, and also access benefits such as housing, education withdrawals, and protection in cases of disability or death,” he said.

To date, EPF has recorded 18,385 i-Saraan contributors and 431 i-Suri participants. Rahmat urged more people to join the schemes as a long-term investment.