Increasing Financial Literacy of Low-Income Households

Prudential and AKPK sign partnership agreement to conduct financial education programmes for 35 B40 communities

KUALA LUMPUR, 23 June 2021 – Prudential Assurance Malaysia Berhad (PAMB) and the Credit Counselling and Debt Management Agency (AKPK) have entered into a partnership agreement to run 23 financial education sessions for 35 PRUKasih communities in 2021. More than 2,300 individuals are expected to benefit from this programme which covers various financial topics, among others budgeting, planning, protection and emergency funds.

This partnership is an extension of PAMB’s PRUKasih programme which provides low-income households with free financial protection to cope with sudden loss of income due to illness, accident or death.

Eric Wong, Chief Customer & Marketing Officer of PAMB said, “Prudential and AKPK have a common mission to empower communities to be financially resilient. To build financial resilience, one must have the knowledge and resources to smart financial planning which many in low-income communities do not have access to. With AKPK’s experience and specially targeted programmes, we piloted a number of financial education sessions in 2019 and 2020 for some of our PRUKasih communities. After taking in the feedback of the participants and making adjustments to the programme, we are delighted to be able to roll it out officially to all our PRUKasih communities this year.”

According to AKPK’s Financial Behaviour Survey 2018, those who earn less than RM2,000 are most financially challenged when it comes to savings and are highly susceptible to financial distress in times of emergency. This same group of people make up 70% of working adults who are not able to cover three months of expenses if they are retrenched.

“AKPK has always been a strong proponent of financial resilience, and financial education plays a big role in its attainment by improving financial behaviour, leading to better financial well-being and peace of mind. Bringing financial education to communities effectively takes a concerted effort. Along the years AKPK has worked hand in hand with various stakeholders to empower communities with financial knowledge and skills to build financial resilience. Financial education is part of AKPK’s work to help create a better tomorrow especially for the underserved. This continues to be a source of motivation to us in AKPK, knowing full well that creating a positive difference in people’s lives is the very reason why AKPK exists,” said Azaddin Ngah Tasir, Chief Executive Officer of AKPK.

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