Malaysia was one of only two markets globally to record year-on-year score increases across all three pillars of financial inclusion, government support, financial system support, and employer support, according to the 2025 Global Financial Inclusion Index from Principal Financial Group and the Centre for Economics and Business Research (Cebr).

Employer support in Malaysia rose 0.8 points year-on-year, while government support and financial system support increased by 0.7 points and 0.1 points respectively.

Now in its fourth year, the Index evaluates how governments, financial systems, and employers facilitate financial inclusion across 42 markets, ranking them both on absolute scores and relative performance.

Globally, after two years of measurable improvements, overall progress in financial inclusion plateaued.

Employer support declined in many markets due to economic and business pressures, but Malaysia rose seven places in the global rankings to seventh.

Improvements were particularly evident in financial guidance and support, where Malaysia moved up eight places to 23rd.

In the government support pillar, Malaysia maintained its rank at 25th while its score increased by 0.7 points, supported by advances in education and access indicators, including government-provided financial education, online connectivity, and retirement-related measures.

Within the financial system support pillar, Malaysia’s score edged up slightly, reflecting gains in credit access, SME support, and business confidence, though its rank fell three places to 19th as other markets recorded faster progress.

Munirah Khairuddin, Chief Executive Officer & Head of Principal Asset Management Berhad (Group of Companies), said:

“Malaysia’s gains in this year’s scores across all three pillars reflect both domestic reforms and broader global forces. Employer support rose even as it declined in many markets worldwide, helped by the implementation of the Progressive Wage Policy pilot, the Employees Provident Fund’s ‘Account 3’ restructure, and wider adoption of Earned Wage Access schemes, which provided households with greater flexibility in managing financial stress.”

“On the financial system side, modest improvements in business confidence, SME growth, and access to credit were supported by the ongoing rollout of 5G coverage and the broader policy direction set out in Bank Negara Malaysia’s Financial Inclusion Framework. These advances are noteworthy given the global backdrop of tighter funding conditions, trade volatility, and shifting capital flows. Malaysia’s experience shows how steady structural investment, alongside targeted reforms, can soften the impact of external pressures and support more resilient, inclusive growth over the long term.”

The Index shows that the overall global financial inclusion score stands at 49.4 out of 100, a marginal decline of 0.2 points compared with 2024, but higher than 41.7 when the Index launched in 2022.

In 2025, 20 markets showed improvements in their scores, while 19 experienced declines.

Employer support slowed globally, with the worldwide score falling 0.6 points; 35 of 42 markets (83%) registered declines, reflecting the impact of geopolitical and trade risks on business confidence and employee benefits.

As employer support weakened, governments and financial systems increased efforts to improve access to and understanding of financial services.

Globally, government support rose 0.6 points, with gains in all major regions, while financial system scores also increased in wealthier regions including North America, Europe, and the Middle East.

Thirty-five markets recorded year-on-year improvements in either government or financial system support.

The Index further highlights the link between financial literacy and household financial outcomes.

A 1% improvement in financial literacy is associated with a 2.8% reduction in household loan defaults and a 6.7% reduction in household debt-to-income ratios, providing measurable long-term benefits for GDP.

Increased financial inclusion in Malaysia has significant implications for households, improving access to financial services and resources and supporting broader economic empowerment.

Featured image credit: Edited by Fintech News Malaysia, based on image by tajnaherakter131 and EyeEm via Freepik