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Keynote Speech at Bersama InvestSmart® @ Pahang 2025
Speaker: Dato' Mohamad Nizar bin Dato' Sri Mohamad Najib, Chairman of Investment, Industrial Development, Science, Technology and Innovation Committee for the State of Pahang
Location: East Coast Mall, Kuantan, Pahang
Delivered: 20 June 2025

Yang Berbahagia Dato’ Mohammad Faiz Azmi, Pengerusi Suruhanjaya Sekuriti Malaysia

Tetamu-tetamu kehormat,

Rakan-rakan Media,

Tuan-tuan, puan-puan dan para hadirin sekalian,

Assalamu’alaikum warahmatullahi wabarakatuh dan selamat petang.

  1. Welcome to Bersama InvestSmart® @ Pahang 2025. First and foremost, I would like to thank InvestSmart and the Securities Commission Malaysia (SC) for choosing Pahang as the host state this year, and for inviting me to deliver the keynote address.
  2. I am honoured to be part of this informative event, held under the theme ‘Bijak Labur Hidup Makmur’.
  3. I commend the SC’s continued efforts in promoting financial and retirement planning, as well as raising public awareness on the risks associated with investment scams.
  4. I believe this event will serve as a valuable platform for the public to gain deeper knowledge into the capital market and its services. I strongly encourage everyone across the east coast - from Kelantan, Terengganu and Pahang, especially those in and around Kuantan to make full use of this opportunity.

Initiatives to lift locals’ economic standing

  1. The state government initiated various projects to boost the state’s economy and to help the locals.
  2. In the first quarter of 2025, RM1.4 billion was invested through the East Coast Economic Region Development Council (ECERDC), resulting in the creation of more than 700 job opportunities for local residents.
  3. Pahang continues to attract international investors across key industrial parks, including the Malaysia-China Kuantan Industrial Park (MCKIP), Pekan Automotive Park (PAP), Pahang Technology Park, and Gambang Halal Park. Pahang is also positioned to spearhead the adoption of Industry 4.0 in the East Coast Economic Region (ECER) through the Asia Centre of Excellence for Smart Technologies (ACES).
  4. These investments are expected to fuel economic growth by attracting an additional RM31 billion in private investments, creating 52,550 new jobs and 23,090 entrepreneurial opportunities for the locals.
  5. At the heart of these efforts is our commitment to inclusive growth. To ensure that no one is left behind, the state government has allocated RM50.5 million in 2025 under ‘Inisiatif Makmur Pahang’, which will benefit 5 clusters consisting of students, religion, B40, graduate and public.
  6. Under ‘Program Tunas Makmur Pahang’, RM9 million has been allocated to support school and university students, as well as teachers and lecturers.
  7. The recently launched ‘Sistem Inisiatif Makmur Pahang (IMP) Siswa’ aims to provide financial aid to all Pahang young locals studying in IPTA or IPTAS registered under the state government.
  8. Additionally, we are distributing RM200 to all orphans that are registered with Jabatan Kebajikan Masyarakat Malaysia, with a total allocation of RM100,000. The state government will also be handing out RM200 to each farmer and fisherman with state allocations of RM1.075 million and RM610,000 respectively.
  9. Furthermore, RM1.66 million has been allocated to provide financial allowance of RM750 for each ‘Jemaah haji’.
  10. As these job opportunities and monetary incentives create economic opportunities, they also highlight the importance of financial vigilance, as people may become more susceptible to scams.

Scams Impacting the Local Community

Ladies and gentlemen,

  1. Investment scams are a growing and serious threat to financial well-being of Malaysians.
  2. Despite national progress in financial literacy, a significant gap remains between general awareness and the practical ability to resist financial fraud.
  3. Pahang has suffered substantial losses, with RM120 million defrauded from 5,658 victims between 2022 and 2024, highlighting the need for targeted interventions1.
  4. A particularly vulnerable group is retired civil servants, with 310 individuals losing approximately RM21.5 million during the same period.
  5. One high profile case involved a research officer in Kuantan who lost more than RM600,000 to a fake share investment scheme promoted through a WhatsApp group.
  6. The 57-year-old victim invested RM14,000, and was able to withdraw RM1,000 in returns. Encouraged, she invested more. However, when she tried to withdraw RM50,000, she was asked to pay RM200,000 in service charges, a red flag that ultimately revealed a scam.2
  7. In another case, an 80-year-old man lost RM174,435 in a cryptocurrency scam. Mis-led by a fraudulent app that falsely showed his investment growing to US$3 million, he was asked to pay RM114,435 in taxes to withdraw his funds, and only realised the scam after being asked for further payments.3
  8. Unfortunately, many victims, do not come forward due to shame or embarrassment.
  9. According to the SC, complaints and inquiries related to scams and unlicensed activities surged by 337% between 2019 and 20244. Of these, the east coast including Kelantan, Terengganu and Pahang accounted for 10% of total reports.
  10. While this increase is concerning, it also signals growing public awareness and trust in reporting mechanisms, a positive step toward early detection and prevention.

The Landscape of Financial Literacy

Ladies and gentlemen,

  1. Another challenge we face is the lack of investment knowledge. Many continue to rely solely on traditional savings and the Employees Provident Fund (EPF), which, while safe, offer limited returns.
  2. Studies show that 61%5  of Malaysians cannot raise RM1,000 in an emergency, and one in four feels overwhelmed by debt, signs of persistent financial vulnerability.
  3. A significant proportion also struggle to grasp basic financial concepts like risk diversification.r
  4. For example, despite their potential for better returns, unit trusts remain underutilised due to a lack of understanding and trust.
  5. This reveals a behavioural gap. Awareness of financial concepts does not always lead to prudent financial decisions or resilience in the face of financial challenges.
  6. Scammers capitalise on this vulnerability by offering seemingly attractive opportunities with promises of high returns and minimal risk, directly targeting individuals who lack the foundational knowledge to critically evaluate such propositions.
  7. This suggests that financial literacy programmes must go beyond simply sharing information. They must aim to drive behavioural change and equip individuals with the skills to make sound financial choices in everyday life.

Advancing Holistic Solutions to Safeguard Investors

Ladies and gentlemen,

  1. Strengthening investor protection requires more than enforcement - it demands proactive education, collaboration, technology, and support.
  2. In Pahang, targeted financial literacy programmes must go beyond general financial tips to equip communities with specific knowledge of investment products, scam red flags, and risk management. High-risk groups like retirees, youths, and rural communities need tailored solutions using familiar platforms and language. Integrating behavioural economics and digital literacy - including awareness of deepfakes and phishing - will help turn knowledge into real-world protection.
  3. Collaboration must be deepened. The Financial Education Network (FEN) should lead more integrated efforts across BNM, SC, PDRM, and local stakeholders. Stronger partnerships with NGOs, educators, religious institutions, and community leaders will ensure financial awareness is both relevant and far-reaching.
  4. To stay ahead of evolving threats, financial institutions must adopt AI-driven scam detection and support public tools to counter deepfake risks.
  5. Finally, victim support must improve. Public awareness of the NSRC’s 24-hour response window can increase the chances of fund recovery. In parallel, expanding access to legal aid and emotional support will help victims rebuild trust and resilience.

Closing

Ladies and gentlemen,

  1. Combatting investment scams is an ongoing, dynamic challenge that necessitates a multi-pronged, adaptive, and continuously evolving approach.
  2. On that note, I wish to once again express my gratitude to the SC for bringing Bersama InvestSmart to Pahang.
  3. I hope this 3-day event offers valuable insights for the people of Pahang and contribute to greater financial empowerment.

Thank you.

  1. New Straits Times; RM120 million lost to scammers in Pahang over 3 years
  2. Malay Mail; Woman loses over RM600,000 in bogus share investment scam, Pahang police investigate
  3. The Star; Accountant, retired teacher lose over RM400,000 to investment scams
  4. SC Annual Report 2024
  5. Borneo Post; Financial literacy in Malaysia: challenges and opportunities
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