BNM to Launch Second Financial Literacy Strategy and Explores Blockchain Tech
The Malaysian central bank, Bank Negara Malaysia (BNM) expects to launch the second National Strategy for Financial Literacy (NS2.0) by the fourth quarter of 2025 (4Q25), which is aimed at strengthening financial literacy and well-being for Malaysians.
According to BNM, insights from the Financial Capability and Inclusion Demand Side (FCI) Survey 2024 – conducted in 3Q24 – will shape the NS2.0.
“Issues such as the impact of digitalisation on consumer behaviours, changes in the financial and economic landscape as well as an ageing society will guide the setting of priorities and plans, in close collaboration with relevant stakeholders and partners through the Financial Education Network (FEN),” BNM said in its Annual Report 2024.
Conducted every three years, the FCI Survey is a cross-sectional survey that assesses Malaysians’ financial capability in terms of financial knowledge, behaviour and attitude, reflected in the Malaysia Financial Literacy and Capability (MYFLIC) Index.
It revealed that the financial literacy levels in Malaysia have been largely unchanged since 2021 with the MYFLIC Index at 59.1 in 2024 from 59 in 2021. Moreover, financial knowledge improved to 62.9 in 2024 from 60.2 in 2021 in most sub-components, particularly in terms of product awareness and understanding of financial concepts such as diversification, inflation as well as risks and returns.
BNM also said that Malaysians have become more aware and knowledgeable of their financial affairs since the implementation of NS1.0 (2019-2023). However, rising costs of living amid uncertain income streams as well as the rapid pace of digitalisation, present new challenges.
“With the advent of social media and more accessible information platforms, awareness on financial products continues to increase,” it said, adding that this presents opportunities for financial service providers and policymakers to intensify efforts to increase financial literacy with greater impact.
In line with this, BNM is also exploring the potential of introducing underlying blockchain technology to enhance various national financial systems such as the Central Bank Digital Currency.
However, BNM governor Datuk Seri Abdul Rasheed Ghaffour said that the central bank is not rushing to implement this initiative as its main focus is more towards creating the right platform to enable its deployment first.
“At the same time, we will have all the appropriate guidelines and safeguards to ensure that this will happen or will develop and evolve,” he said regarding the tokenisation of bonds and sukuk, which is a collaborative initiative by the Securities Commission Malaysia (SC) and Khazanah Nasional Bhd.
He also mentioned that the exploration of asset tokenisation is part of BNM’s effort on futureproofing Malaysia’s key financial infrastructures for greater efficiency and resilience by working with global regulators.
Both the SC and Khazanah Nasional aims to introduce the initiative this year – a move to broaden retail participation in Malaysia’s capital market, while BNM’s role is to ensure accessibility while providing protection for retail participants in the country’s capital market.
