Financial literacy is defined as possessing an awareness of financial risks and opportunities; to make informed choices; to know where to go for help; and to know how to take effective actions to improve one’s financial wellbeing. The Organisation for Economic Co-operation and Development (OECD) has identified the lack of financial literacy as one of the leading reasons why micro, small and medium enterprises (MSMEs) are unable to grow. This is a significant issue, considering that MSMEs represent the majority (95-99 percent) of enterprises in ASEAN and contribute significantly to employment and economic growth.
Financial literacy is particularly low in Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV) countries, and CLMV governments are increasing their efforts to improve financial literacy for enterprises. Despite these efforts, challenges remain in accessing marginalised groups such as women and rural entrepreneurs, providing a holistic approach to strengthening financial literacy, and ensuring relevance for micro-enterprises.
This project aims to help CLMV governments develop or improve their financial literary programmes to address specific knowledge gaps in micro-enterprises, or a sub-group of it, based on identified needs of targeted micro-enterprises, good practices and lessons from existing/ past financial literacy initiatives across the four ASEAN Member States. It will propose scope of contents, effective approaches for delivery of the information including the most effective channels and media to reach the beneficiary, and propose strategic partnerships for the delivery of these information packages, preferably into existing financial literacy programmes.