Malaysia Drops to 20th in Global Financial Inclusion Index

Malaysia is ranked 20th in the most recent Global Financial Inclusion Index, which analyzes financial inclusion in 41 countries, a small decrease from the previous year's 18th position. This indicates that the country required less government involvement compared to others due to its stronger economy and population.

When it comes to government-supported financial inclusion, Malaysia dropped to 24th place. The nation dropped from 5th to 16th in terms of access to government-funded financial education.

In spite of these decreases, Malaysia made advancements in different aspects, moving up to 28th place for education levels and jumping four spots to 26th for financial literacy. The varied outcomes mirror the intricate financial situation in Malaysia as it deals with global economic difficulties.

The 2024 Global Financial Inclusion Index, carried out by Principal Financial Group and the Centre for Economics and Business Research, showcases the advancements nations have achieved in enhancing the availability of financial services.

The report indicates that global financial inclusion has been on the rise for the second consecutive year, with progress seen in all regions. The index evaluates the level of support provided by employers, governments, and financial systems for increased access to financial services.

Principal Asset Management Malaysia CEO Munirah Khairuddin said “Malaysia, alongside India, has been a relative economic beneficiary of China’s contraction. In recent years, the country has benefitted from taking on some of China’s labour capacity and, in addition, higher commodity prices have buoyed its export market.