NEXT GEN INVESTORS FOCUS MORE ON EMERGENCY, TRAVEL FUND - SC

KUALA LUMPUR, March 9 (Bernama) -- Younger investors tend to focus less on retirement and more on immediate priorities with building emergency savings ranked first with 46 per cent, funding travel at 39 per cent ranking higher than making large, long-term investments at 15 per cent.

This reflects a more lifestyle-driven approach to financial planning, in contrast to older generations who place greater emphasis on retirement and long-term security, said the Securities Commission Malaysia (SC).

“These differences highlight the need for wealth solutions that can adapt to varying timelines, motivations and life stages,” it said in the Capital Market Masterplan 4 (2026-2030).

This generation is not just participating in the market, they are reshaping it into something more personal, purposeful and human, said the SC in the masterplan that was launched by Prime Minister Datuk Seri Anwar Ibrahim here today.

For younger investors, making money is also no longer the only goal.

“Environmental and social considerations are increasingly important motivations for investing.”

SC said a significant 70 per cent of millennials and 66 per cent of Gen Z believe it is important for their financial institutions to align with their personal values, and more than half say they regularly factor in ESG issues when making investment decisions.

“This generation is also more willing to look beyond conventional products like stocks and bonds. Many are investing in emerging asset classes such as digital assets, alternatives and derivatives.”

Around 35 per cent of millennials and Gen Z hold crypto, compared with only 8 per cent of baby boomers, and they are allocating a growing share of their portfolios to these newer products, said SC.

They also learn differently, said the commission adding that Gen Z and millennials often turn to digital platforms and their peers for knowledge, as evidenced by their higher use of digital services such as artificial intelligence (AI) chatbots (36 per cent), budgeting applications (32 per cent) and robo-advisers (19 per cent), compared with Gen X and baby boomers.

This shift makes transparency and digital trust more important than ever, as guidance and information increasingly flow through online channels, it said.

-- BERNAMA