ID :
191514
Tue, 06/28/2011 - 11:22
Auther :
Shortlink :
https://oananews.org//node/191514
The shortlink copeid
LACK OF FINANCIAL AWARENESS MAY AGGRAVATE QUALITY OF LIFE ON RETIREMENT
PUTRAJAYA, June 28 (Bernama) -- The lack of financial awareness and of
available investment products at an early age may aggravate the quality of life
on retirement, said Deputy Finance Minister, Dr Awang Adek Hussin.
Awang Adek said it may also create social problems and increase the burden
of tax payers in providing for the social welfare of senior citizens.
"Various policy measures have been drawn up to increase the life insurance
penetration rate to 75 per cent by 2020. Currently, it is at 41 per cent of the
population, or 2.8 per cent of gross domestic product, compared to Singapore's
6.1 per cent and Japan's 7.5 per cent," he said at the launch of Bank Simpanan
Nasional's wealth management products and services here Tuesday.
He said the penetration rate of takaful products among the 16 million
Muslims was only 10 per cent, while lack of awareness on the importance of
wasiat or will writing has resulted in RM42 billion (US$14 billion) worth of
assets belonging to those who died intestate, being frozen.
"Therefore, it is vital for the financial institutions to take educate and
offer the solutions to the society," he said.
Awang Adek said despite the rising costs of medical treatment, about 15
million, or 60 per cent of Malaysians, did not have insurance coverage to
cushion them against the potentially high medical expenses.
He said another area of concern was the rising education expenses.
"The common advice would be to save and invest your money as early as
possible and diversity your investment portfolios to hedge against the increase
in cost of living and education," he said.
Awang Adek said the competitiveness of banking sector also needed to be
enhanced to withstand forces of change and compete in a more liberalised
environment.
He said successful institutions will be the ones with the ability to adapt
swiftly and respond to the changing market needs through innovative and
differentiated products offerings, excellent service quality and superior level
of efficiency.
"With growing competition in traditional banking products and services,
banking institutions, BSN in particular, need to continually strive for
excellence in product development capabilities with a greater focus on
customised and higher value-added services," he said.
-- BERNAMA
available investment products at an early age may aggravate the quality of life
on retirement, said Deputy Finance Minister, Dr Awang Adek Hussin.
Awang Adek said it may also create social problems and increase the burden
of tax payers in providing for the social welfare of senior citizens.
"Various policy measures have been drawn up to increase the life insurance
penetration rate to 75 per cent by 2020. Currently, it is at 41 per cent of the
population, or 2.8 per cent of gross domestic product, compared to Singapore's
6.1 per cent and Japan's 7.5 per cent," he said at the launch of Bank Simpanan
Nasional's wealth management products and services here Tuesday.
He said the penetration rate of takaful products among the 16 million
Muslims was only 10 per cent, while lack of awareness on the importance of
wasiat or will writing has resulted in RM42 billion (US$14 billion) worth of
assets belonging to those who died intestate, being frozen.
"Therefore, it is vital for the financial institutions to take educate and
offer the solutions to the society," he said.
Awang Adek said despite the rising costs of medical treatment, about 15
million, or 60 per cent of Malaysians, did not have insurance coverage to
cushion them against the potentially high medical expenses.
He said another area of concern was the rising education expenses.
"The common advice would be to save and invest your money as early as
possible and diversity your investment portfolios to hedge against the increase
in cost of living and education," he said.
Awang Adek said the competitiveness of banking sector also needed to be
enhanced to withstand forces of change and compete in a more liberalised
environment.
He said successful institutions will be the ones with the ability to adapt
swiftly and respond to the changing market needs through innovative and
differentiated products offerings, excellent service quality and superior level
of efficiency.
"With growing competition in traditional banking products and services,
banking institutions, BSN in particular, need to continually strive for
excellence in product development capabilities with a greater focus on
customised and higher value-added services," he said.
-- BERNAMA
