Financial Planning Starts with You(th) in a VUCA World

How many times have we heard the adage “Failing to Plan means Planning to Fail” – shrugged, and gone on to fail? Sometimes we are just tired, overwhelmed or distracted, and the wisdom of it does not sink in with the urgency that it should. This is one factor which the Malaysian Financial Planning Council (MFPC) sees as something that needs to be corrected, if Malaysians are to go beyond just making a living. Indeed, the MFPC considers it imperative that each and every citizen understands the need to be financially literate, not just for themselves but for their families and their future.

This is the basis for its dedicated advocating of financial planning. But what exactly is financial planning, and what does it entail? It generally means evaluating your finances in terms of income, expenditure, debt and savings, and how you intend to manage all these as you progress through life. It is a big task that must take into account many risks and factors, including basic needs, income and spending, possible debt accumulation, and the ever-increasing expenses of housing, education and health. If there is one thing the pandemic taught us, it is that nothing is certain; that must be planned for, too.

While uncertainty, in its entirety, is too complex to completely plan for, we need to address the issues that affect us financially, using our own resources, and within our current constraints. And we need to start as early as possible. This is one of the reasons that MFPC advocates a financial planning career for young people. Set up in 2004 on the initiative of Bank Negara Malaysia (BNM), MFPC’s main objective is to promote the nationwide development and enhancement of the financial planning profession. It conducts professional education programmes leading to recognised qualifications, the Registered Financial Planner (RFP) and Shariah Registered Financial Planner (Shariah RFP).

Ever mindful of the dynamic financial environment and constantly evolving regulations, it also promotes Best Practice Standards and a Code of Ethics for RFPs & Shariah RFPs to ensure the professionalism of the industry. It is worth noting that longitudinal national research funded by the Capital Market Development Fund (CMDF) has shown distressingly low levels of financial literacy among Malaysians in general, leading to rising concern over how the country will deal with its growing debt, and its ageing population. One solution is to create more awareness of these issues through better financial education and appropriate training, particularly among youth.

Many of these education programmes are offered free of charge, as MFPC considers it a social responsibility that will increase productivity and ultimately, national development. Among these programmes are the “My Money & Me” financial planning workshops, and programmes for Shariah Financial Planning Awareness. Besides this, October has also been declared National Financial Literacy Month; Malaysian Financial Planning Day is scheduled for 21st October 2023, with a full-day programme at the Securities Commission (SC) Malaysia.

This whole-day event is a joint effort by four Malaysian financial planning associations: MFPC, the Financial Planning Association of Malaysia (FPAM), Association of Financial Advisers (AFA), and Malaysian Financial Planners and Advisers Association (MFPAA). The programme which is fully funded by the Capital Market Development Fund (CMDF) will be officiated by Datin Azalina Adham, Managing Director of Securities Commission, Malaysia. Opportunities abound in financial planning. Not only will programme participants have access to leading industry experts during the event sessions, they will also be offered initial contact and one-to-one sessions with recruiters if they are interested in becoming part of the profession.

All this is aligned with MFPC’s objectives of providing a platform for those seeking career advancement, and practitioners, to meet and interact with licensed financial planners, to understand the work and industry better. The event will also be an opportunity for professional networking, and industry updating. Additionally, financial planning companies and companies specialising in capital market services will be participating in an exhibition that will run alongside the presentations, discussions and sessions on the day of the event.

With its focus on financial literacy, MFPC is fixed firmly on elevating the financial planning industry, and expanding the pool of qualified financial planning professionals in the country. Its efforts have already borne fruit; its RFP and Shariah RFP certifications, endorsed by Bank Negara, are widely acknowledged as industry benchmarks, and are prerequisites for the Financial Adviser’s Licence and Financial Adviser’s Representative Licence. The SC also recognises them as necessary qualifications for application of the Capital Markets Services Representative’s Licence (CMRSL).

MFPC’s financial literacy initiatives have been garnering awards both locally and internationally since 2014, when its financial planning was honourably commended by the UNESCO Wen Hui Award for Educational Innovation. Since then, it has achieved awards every year, including as the Best Educational Institute in Banking and Insurance from the World Education Congress Global Awards (2016); and the Global Islamic Finance Award (GIFA) for its nationwide public literacy programmes, in the Advocacy category.

In 2021, the Organisation for Economic Co-operation and Development (OECD) recognised the “My Money & Me” public literacy programme as an outstanding example of a public initiative to provide basic personal finance knowledge. The Shariah Registered Financial Planner (Shariah RFP) Programme has won the GIFA honour twice – in 2022 and 2023 – for Best Islamic Wealth Management Qualification. These international awards underscore the fact that MFPC is on the right track where addressing public financial literacy is concerned, but it is not about to rest on its laurels.

The need to increase financial literacy of the Malaysian public is urgent; youths, in particular, require a sound foundation in this matter, considering the dynamic and volatile environment that they will inevitably have to operate in, as they move from school desk to job work station. They will need all the help they can get, as they navigate their way through an increasingly volatile, uncertain, complex, ambiguous (VUCA) world.

The MFPC’s premier event, Malaysian Financial Planning Day, will be held at the Securities Commission on Saturday, 21st October 2023, from 8:00am to 5:00pm. The day-long event will feature presentations by leading industry practitioners, one-to-one consultations on career opportunities, professional networking, and industry updates, to help youths determine if financial planning is indeed a career path for them.

This article is provided by Malaysian Financial Planning Council (MFPC)

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