Helping Low- and Moderate-Income Malaysians Save
The COVID-19 pandemic has left many major economies in cyclically weak positions, with record job loss eroding savings and excessive borrowing placing people at great risk. In Malaysia, the majority of the country’s population has only one to two months’ worth of expenses in savings, with the self-employed being the most affected. UNCDF - Centre For Financial Health and its partners in Malaysia – GoGet, an on-demand job platform, and Pod, a fintech start-up – are addressing the issue of low savings among low- and moderate-income Malaysians, particularly youth, through a micro- savings app eponymously called Pod.
This brief shares several insights around the savings habits of low and moderate-income Malaysians, and how this information has shaped UNCDF’s financial interventions with Pod and GoGet to encourage savings in the context of the unprecedented challenges brought on by the COVID-19 pandemic.