Malaysia makes biggest financial inclusion leap

Malaysia has made significant strides in improving financial inclusion, climbing six places to rank 15th globally in the 2026 Global Financial Inclusion Index. This leap is attributed to stronger support from the financial system and employers. The country's overall financial inclusion score improved by five points to 58.2, surpassing the global average of 52 and the Southeast Asian average of 48.

The financial system support category saw the most significant improvement, with Malaysia moving up six places to 13th globally. This boost was driven by higher real-time transaction volumes, which propelled the nation to ninth place in this category. Malaysia also experienced smaller gains in its rankings for capital access, credit access, and business confidence.

The country excels in employer support, securing the fifth position globally, a two-place improvement from the previous year. Employer support scored 72.6, above both global (65.7) and Southeast Asian (69.3) averages. However, Malaysia's government support ranking dropped by one place to 26th with a score of 53.6. Munirah Khairuddin, Chief Executive Officer of Principal Asset Management Bhd, highlighted how Malaysia's modernized financial sector has expanded access to funding and bolstered business confidence.

The improvements have also spurred growth among small and medium enterprises, bolstered business confidence, and contributed to a robust labour market and GDP growth reaching multi-year highs. Malaysia is classified as a "Stable Incumbent" among potential fintech leaders, reflecting its robust digital financial infrastructure and status as a digital financial centre.

To maintain these gains, continued investment in digital finance infrastructure and supportive governance and consumer safeguards are essential. Initiatives like the Digital Economy Blueprint, Bank Negara Malaysia's Financial Sector Blueprint, and the Securities Commission's Capital Market Masterplans have bolstered Malaysia's fintech ecosystem.

Globally, financial inclusion reached a new high in 2026, with the overall score reaching 52.0, its highest since the index's inception. However, employer support declined for the second year in a row, dropping 2.9 points to 65.7. The gap between support and consumer perceptions widened due to rising expectations and cost-of-living pressures, indicating that existing support systems may not be keeping pace with current consumer needs.