More than 70% of Malaysians would be unable to support themselves for more than six months if they suddenly lost their source of income, according to Sun Life Malaysia’s 2026 Financial Resilience Index.
The survey found that while most Malaysians recognise the importance of saving for financial security, only 30% said they have enough savings to sustain themselves for more than six months without income.
Financial resilience declines
The report also revealed a decline in financially resilient households, with the proportion falling from 30% last year to 22% this year. Only 11% of respondents described their current financial situation as “very secure”.
Sun Life Malaysia president and country head, Raymond Lew, said that rising inflation and living costs have forced many households to focus on meeting immediate expenses, often at the expense of long-term financial planning.
Living costs remain biggest concern
87% of respondents said inflation has made their monthly expenses harder to manage. The biggest financial burdens cited were:
- Grocery prices and fuel costs (94%)
- Utility bills (92%)
- Healthcare expenses (89%)
- Cooking fuel (89%)
48% said their top financial priority over the next 12 months is covering daily living expenses, ahead of saving or investing. 59% identified the rising cost of living as the biggest obstacle to achieving financial stability.
To cope with rising costs, many households are:
- Pausing retirement savings in some cases
- Dipping into their savings to cover everyday expenses
- Cutting back on essential spending
AI increasingly used for financial decisions
The survey found that generative artificial intelligence (GenAI) is becoming a popular source of financial information, with 52% of respondents saying they use AI at least occasionally when making financial decisions.
Among them, 22% said they rely on AI for almost every financial decision, while 58% expect to increase their use of AI over the next year. Despite AI’s growing popularity, respondents still prefer professional financial advisers for more complex decisions, particularly when it comes to understanding long-term risks, returns and personalised financial planning.
The survey also found that:
- 60% of Malaysians have no long-term financial plan or only plan up to one year ahead.
- Only 21% have financial plans that extend beyond five years.
- Just half of respondents believe they could cope if the cost of living continues to rise.
The report concluded that financial literacy remains a key factor in building resilience, with 68% of respondents rating their financial knowledge as average or below average. Those with stronger financial knowledge were more likely to plan for the long term and reported lower levels of financial stress.
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