Financial Education and Consumer Empowerment: The Development in Malaysia with Reference to the Role of Regulator

Abstract

Financial education has fast emerged as a pivotal instrument to help individuals and households navigate the increasingly complex financial decisions they must make in the short-term and long-term. Though not entirely similar to consumer protection, arguably, effective financial education will help empower consumers to protect themselves through prudent wealth management and wise spending behaviours. By employing qualitative content analysis, this study examines the development of financial education initiatives implemented by the Central Bank of Malaysia (BNM) since the introduction of the Financial Sector Master Plan 2001. The study found that BNM as the regulator has consistently committed to formulating numerous approaches to educate financial consumers through Consumer Education Programmes, a strategic partnership known as Financial Education Network, and the introduction of the National Strategy of Financial Literacy and Financial Literacy Month. It is also submitted that financial education's success does not solely rely on financial regulators but requires cooperation from relevant non-governmental organisations and consumers.