NEED FOR BETTER FINANCIAL LITERACY AMONG THE PEOPLE

PETALING JAYA (Selangor, Malaysia), May 26 (Bernama) -- There is need to accelerate the financial literacy of the people, says Deputy Finance Minister Donald Lim Siang Chai.

"It is important to position prudent financial management as the key ingredient of raising living standards in Malaysia," he told reporters after opening Standard Financial Planner (SFP) Sdn Bhd's new office here Thursday.

Lim said financial management was crucial in these global uncertain times and the opening of SFP's office was in line with the government's 2020 Vision and the need for pre-retirement wealth creation and post retirement strategies.

Established in 1999, SPF is a full service financial planning group licensed by the Securities Commission and Bank Negara Malaysia. It has 165 advisers nationwide.

Lim said governments now realise that they exist within a global village and there was a need to penetrate other markets and adopt international standards to remain competitive.

"As with other developed countries, the independent financial adviser channel is important source of advice and will continue to grow into the future in line with international trends," he added.

Meanwhile, SFP Chief Executive Officer, Paul Khoo said financial planning in Malaysia was still at infancy stage and building the foundation would have to start now.

"A strong foundation means people will be resilient to financial meltdown and will be able to better manage planning for retirement and children education," he said.

SPF has 90 of the 170 financial adviser licenses approved by Bank Negara (Malaysia's Central Bank). It has partnership with 18 fund managers in Malaysia who together manage 40 per cent of total assets.