Community Leaders’ Financial Literacy Towards Sustainable Community in Malaysia

Abstract

In the fast-paced world of the 21st century economic landscapes evolve rapidly and financial literacy has become vital for leaders across all sectors. It equips them to navigate complex financial environments, make informed decisions and adapt to economic shifts. In Malaysia, the government has formed the Community Leaders under the rural development program for village development. As a result of that, the Ministry of Rural and Regional Development has allocated resources to assist community programs. Therefore, these community leaders should be equipped with financial literacy to ensure that the financial resources are managed efficiently and effectively. Financial literacy is one of the most important requisites to financial well-being. It is also described as the measurement of how well an individual can understand and use information related to finance to make decisions. The objective of this study is to examine the needs of the Financial Literacy Model for community leaders. Further, it will also determine the components to be included in developing the Financial Literacy Model to enhance the public financial management system among community leaders. A mixed method research design, which combined qualitative (focused group interviews on selected community leaders) and quantitative (questionnaires) data will be employed in this research. Data analysis in qualitative research focuses on the process of systematically searching and arranging the interview transcripts. Interview sessions are crucial for gaining a thorough understanding of financial knowledge and skills among leaders. The research is anticipated to assist policymakers, community leaders and the government in improving sustainable community development.