Sun Life Financial Resilience Index: Only 11% of Malaysians Feel Financially Secure as Rising Costs Erode Financial Preparedness

29 Jun 2026

• More than eight in ten people surveyed across Malaysia (87%) say inflation has made it harder for them to meet their monthly costs.
• Cost of everyday essentials is soaring; rising grocery prices are affecting 94% of people surveyed, followed by utilities (92%), transport fuel (62%), healthcare (89%) and cooking fuel (89%).
• As a result, just 38% of those surveyed are highly resilient, down from 57% in 2025. Only 11% feel fully secure about their financial position.
• Faced with a short-term budget squeeze, more than half of respondents (60%) are planning no further than a year ahead.
• 70% say they would not cope beyond six months in the event of a sudden loss of income. 
• Households with higher financial literacy are more likely to feel confident (by 49 percentage points), more likely to feel optimistic (by 42 points), and less likely to experience frequent stress (by 15 points) about the economic environment.

Kuala Lumpur, 29 June 2026 – Sun Life Malaysia today released its third Financial Resilience Index: Malaysia navigates rising costs, revealing how prolonged cost-of-living pressures are weakening the financial resilience of Malaysian households. While inflation continues to strain everyday families’ finances, the study finds a growing number of people are sacrificing long-term financial preparedness to day-to-day expenses. 

More than eight in ten respondents (87%) say inflation has made it harder to meet monthly costs, while only 11% feel financially secured. The findings also show that 70% would be unable to cope beyond six months without external support if faced with a sudden loss of income.

Cost of living pressure hits household finances

The findings highlight inflation's real-world impact as geopolitical and macroeconomic headwinds, including Middle East tensions and the resulting oil price shock, squeeze family budgets. Rising everyday costs are the most immediate pressure on households in Malaysia, with grocery prices affecting 94% of people, followed by utilities (92%), transport fuel (94%), cooking fuel (89%) and healthcare (89%).

Nearly six in ten respondents (59%) say rising costs are the biggest barrier to taking control of their finances, highlighting how affordability concerns are shaping financial decisions in 2026. As a result, many households are making short-term trade-offs to manage daily expenses, often at the expense of long-term financial security.

Commenting on the survey findings, Ho Teck Seng, President and Country Head of Sun Life Malaysia said, "While inflation continues to influence everyday spending decisions, the bigger concern is its impact on long-term financial resilience. When households are forced to focus on immediate needs, it becomes more harder to build savings to weather future storms and stay on track towards longer financial goals.” 

Fewer families firmly positioned to withstand financial pressure

In an uncertain economic environment, the proportion of highly resilient households has fallen from 30% in 2025 to 22% this year. As families live with a reduced financial buffer, only 11% say they feel fully secure about their financial situation, down from 16% last year, underscoring the scale of the financial impact across Malaysia.

In response to rising everyday expenses, people are shortening financial planning horizons and making decisions that compromise their long-term stability. Short-term decisions are becoming a key driver of declining resilience across the region; 27% of respondents are drawing down savings, 29% are reducing or skipping essential spending, and 13% have paused retirement contributions.
 
Managing day-to-day expenses is the top priority for 48% of people over the next 12 months, ahead of saving, investing, or long-term planning. More than half (60%) of people have no financial plan or are planning no further than a year ahead, and 70% would not be able to cope for more than six months without external financial support in the event of job loss or illness.

Financial literacy fuels confidence 

While cost-of-living pressures are widespread across Malaysia, their impact is not felt evenly. Financial literacy emerges as a key differentiator, with those who have stronger knowledge and skills significantly more likely to feel confident about their financial situation and optimistic about the future, despite current challenges.

Households with higher financial literacy are more likely to feel confident (by 49 percentage points), more likely to feel optimistic (by 42 points), and less likely to experience frequent stress (by 15 points). These differences are also reflected in behaviour, as households with stronger financial capability are more likely to plan ahead and maintain longer-term financial habits, while others remain focused on immediate costs. 

The study also reveals a significant shift in how Malaysians seek financial information. Six in ten respondents now regularly use generative AI tools for financial advice, up sharply from 18% in 2025. However, greater access to information has not automatically translated into stronger financial preparedness, reinforcing the importance of financial literacy and trusted guidance.

David Broom, Chief Client and Distribution Officer at Sun Life Asia, said, “As financial decisions become more short-term, the risk is that people lose sight of longer-term outcomes. Even with more access to information and tools, navigating complex financial decisions still requires guidance. This is where professional financial advice continues to play an important role in helping people turn short-term choices into long-term plans.”  

About this survey
The research surveyed more than 6,000 respondents across Malaysia, Hong Kong SAR, Indonesia, the Philippines, Singapore, and Vietnam, and highlights trends in financial planning, literacy, risk appetite, and the role of professional advice in building long-term resilience in May 2026. 

The Index categorises households into low, moderate, and high resilience groups based on how secure they feel and how they manage their finances. It highlights the behaviours and attitudes that distinguish those who are prepared for shocks from those who are more vulnerable.

The Index looks at five key aspects of everyday financial life:

• Financial security: whether households feel secure or insecure in their current situation
• Planning horizon: how far ahead they plan, from only a few months to more than five years
• Emergency preparedness: their ability to cope with unexpected financial shocks
• Financial literacy: how well they understand personal finance concepts and rate their own knowledge
• Confidence in long-term goals: whether they feel able to meet future financial commitments

Together, these dimensions provide a fuller picture of how households are managing today’s pressures, and how prepared they are for what comes next.

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About Sun Life Malaysia

Sun Life Malaysia (Sun Life Malaysia Assurance Berhad and Sun Life Malaysia Takaful Berhad) is a 
joint venture by Sun Life Assurance Company of Canada and Khazanah Nasional Berhad.
 
As a life insurance provider and a family takaful operator, Sun Life Malaysia offers a comprehensive 
range of products and services to Malaysians nationwide and is committed to helping Clients achieve 
lifetime financial security and live healthier lives. Sun Life Malaysia distributes its products through a 
range of channels, including bancassurance and bancatakaful, agency force, direct marketing and 
telemarketing, corporate and government business and e-distribution.
 
Sun Life Assurance Company of Canada is a principal operating life insurance subsidiary of Sun Life 
Financial Inc., a leading international financial services organisation providing insurance, wealth and 
asset management solutions to individual and corporate Clients. Sun Life has operations in a number 
of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, 
the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda.  
As of December 31, 2025, Sun Life had total assets under management of $1.60 trillion. For more 
information, please visit www.sunlife.com.
 
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock 
exchanges under the ticker symbol SLF.

For more information, please visit www.sunlifemalaysia.com.