PETALING JAYA: Financial experts have urged Malaysians to be prudent in their spending and look for opportunities to ride out an expected recession.
Director of financial planning at Finwealth Management Felix Neoh said individuals should review their budget for expenses and find ways to cut back.
“For those with a lower income, focus on needs instead of wants and try to build a cash reserve.
“Save money on food, which is often a big percentage of one’s expenses, and put the announced EPF reduction to good use,” he told theSun.
Neoh said those with a higher income should review ongoing subscriptions and look to downgrade or stop them, while avoiding a large volume of investments.
“For those with a stable source of income, ensure at least six months of emergency funding is in place, while retirees should have two to three years of expenses as cash reserves.”
He said investors should evaluate whether to maintain their existing investment profile or dial it down to preserve investment capital.
“Ensure you have the appropriate level of low, moderate and high-risk assets and are in well-diversified portfolios spread across different asset classes, geography and currencies,” he said.
He added individuals should look for ways to optimise their position wherever possible, and to seek a second opinion and assistance from a licensed financial planner if needed.
Sunway University Business School’s Professor of Economics Dr Yeah Kim Leng said those affected should focus on meeting their basic needs first.
“Employees, who are retrenched or have taken pay cuts due to Covid-19, should make use of government assistance,” he said.
Among the aid provided is the federal government’s monthly financial aid of RM600 to employees on unpaid leave.
Additionally, Bantuan Sara Hidup recipients also have the RM200 payment brought forward from May to March, with an additional RM100 to be paid later in May.
Selangor announced a RM127.78 million economic stimulus package comprising, among others, a deferral on land tax payments, benefits for frontline workers fighting the virus, as well as incentives for licensed traders and hawkers.
Meanwhile, the Federal Territories Islamic Religious Council announced an additional RM500 special zakat aid to 24,196 asnaf in the Federal Territories.
Banks are also providing special assistance, loan facilities, restructuring facilities and a six-month moratorium for businesses, small and medium enterprises and individuals.
Expert Cited
