Gen Z Malaysia: Credit Scores Over Savings?

Introduction: 

For older generations, saving was the cornerstone of financial planning. But for Malaysia’s Gen Z (born between 1997–2013), it’s not that simple. With rising living costs and unstable income, saving is hard and increasingly, having a good credit score seems more useful than hoarding cash. 

According to Etiqa’s Gen Z Financial Health Survey, 64% of young Malaysians cited insufficient emergency funds and difficulties saving money as their top financial concerns. These challenges are compounded by credit anxiety, with 48% expressing worry over poor credit scores and their overall financial health. 

This shift in priorities suggests that Gen Z is moving from a “save more” mindset to a “manage smarter” approach, where credit health and high credit scores are becoming a central part of financial stability. 

Why Saving Is No Longer Enough 

In recent years, Gen Z in Malaysia has been facing growing financial pressure. A Deloitte Global survey highlighted that 45% of Malaysian Gen Z identified the rising cost of living as their top concern (Business Today, 2024) . Starting salaries for young workers hover around RM2,600 per month (Sinar Daily, 2024), yet covering basic expenses like rent, food, and transportation remains a challenge. 

Data also shows that 65% of Gen Z Malaysians live paycheck to paycheck (Business Today, 2024) , while 71% of Malaysians overall save less than RM500 monthly (The Rakyat Post, 2023). For many, saving is no longer a matter of discipline but survival. 

These challenges are further confirmed by Etiqa’s financial survey, which found that 64% of young Malaysians lack sufficient emergency savings (Sinar Daily, 2024). With limited room to save, more Gen Z are shifting their mindset from pure saving to smarter long-term planning, where credit health is starting to take center stage. 

The Rise of Credit Awareness Among Gen Z 

As Gen Z confronts economic pressures, many are recognizing that credit scores serve as their financial passport. According to CTOS, the average CTOS score among Gen Z rose from 663 to 678，comparable with national averages increasing by 2.2%, indicating a gradual embrace of credit products (CTOS, 2022). Meanwhile, BNPL has seen rapid growth: by December 2024, there were 5.1 million active BNPL users in Malaysia, and its outstanding exposure reached RM2.8 billion, with young people forming the bulk of users (The Edge Malaysia, 2025). These trends reveal a generation aware that a good credit score is increasingly essential，not only for loan approval but also for managing day-to-day financial flexibility. 

How Tech and Finfluencers Are Normalizing Credit Report Checks 

One of the key reasons more Malaysians, especially younger ones, paying attention to their credit scores is the rise of accessible financial tech and relatable education via social media. 

With apps and online platforms like FinDoctor, checking your CTOS or CCRIS report is no longer complicated or intimidating. What used to require bank visits or financial advisors can now be done in minutes from your phone for free. This convenience has helped normalize routine credit report checks, not just for loan applications but for general financial awareness. 

At the same time, a new wave of “finfluencers” on TikTok, Instagram, and YouTube are reshaping how Malaysians, especially Gen Z, learning about credit health. Creators like Mr Money and Financial Faiz use bite-sized videos to explain how credit scores work, why late payments matter, and how to fix a poor rating. These creators often walk through real CTOS reports (with personal info hidden), giving viewers the confidence to check their own. 

Conclusion 

Thinking of renting your first place, Getting a car loan or Launching a side hustle with a bank loan? You’ve got goals. Now get the credit score to match. 

If you’re part of Gen Z, this isn’t just a “grown-up” problem anymore. It’s your reality and you can start fixing it now. Instead of waiting for a rejection letter, it’s smarter to proactively improve your credit health. That starts with awareness. Check your credit score, understand what’s affecting it, and start taking small steps to build a stronger financial foundation.  

Use FinDoctor’s free Credit Report to instantly view your CTOS/CCRIS status and get tips to improve your score. It’s fast, confidential, and could make a big difference in your future opportunities.