PETALING JAYA: Malaysian youth are more aware of non-capital market products in the country in comparison with capital market products, says the Securities Commission (SC).

       According to the SC’s annual report 2021, its investor survey revealed that the high awareness of non-capital market products among the youth included insurance, Tabung Haji and fixed deposits.

       “Respondents’ awareness of capital market products, unit trusts and stocks and shares were the highest recorded, comprising 86% and 65%,respectively,”it said.

       Furthermore, findings from the survey also showed that investment decisions of the youth were not based on fundamentals, but mainly driven by socio-economic status, family, friends, influencers as well their perceptions of the products and brands.

       It also revealed that there was also familiarity bias among the respondents, choosing to invest in products that they were already familiar with.

       About the youth’s perception of the level of risk that they were willing to take for investments, the SC said only 3% of youths considered themselves to have a high-risk appetite.

       “This may suggest that risk aversion has set in due to the pandemic,’ it added.

       However, on capital market products and their associated risks, the survey showed that respondents viewed investments in Amanah Saham Bumiputera (ASB) as low-risk.

       “In comparison, 70% of the respondents perceived stocks and shares to be high-risk.

       “Overall observations suggested that respondents perceived the capital market products as high-risk and this perception was consistent across the demographic profiles,” it said.

       With regards to the youth’s priorities, the SC noted building wealth and investment was only a priority for roughly one-third of the sampled population.

       While other respondents viewed having emergency funds, savings to support family and paying off debts as their priorities.

       “This shows that respondents would use their income towards emergency funds and savings earlier in life and would only focus on retirement at a later stage,” the SC explained.

       In terms of the preferred learning method on the capital market, about 51% of respondents preferred financial investment talks.

       In addition, findings from the survey also showed that respondents preferred online media such as social media and websites, compared to traditional media such as newspapers and magazines.

       “The findings suggested that the SC’s investor education events were essential and would continue to be a valuable platform for investors to gain knowledge. Responses gathered served as references for the SC to formulate necessary interventions through targeted outreach programmes, where possible, to advance investor protection efforts,” it said.

       Overall, findings from the survey disclosed that the top three priorities that respondents considered before investing was how much money was available for them to invest, sufficient savings to support family and paying off existing debts.

       “This shows that those with low disposable income would find it more difficult to set aside money for investment, especially when paired with risk concerns,” it said.