Malaysia Improves its Position to 18th in 2023 Global Financial Inclusion Index
Malaysia has risen two spots to the 18th place in the 2023 Global Financial Inclusion Index. It’s a comprehensive index released by Principal Financial Group (Principal) and the Centre for Economics and Business Research (CEBR) annually.
Positive Shifts in Southeast Asia
Consumer data from Southeast Asia reveals a positive shift in financial inclusion perceptions. Malaysia jumped from 20th to 15th place, entering the top half of the rankings for public perception.
Pillars of Progress
According to the survey, Malaysia improved in two of the three pillars of financial inclusion. It secured 22nd place for government support (up two places from 24th), 17th for financial system support (up six places from 23rd), and maintained its fifth place ranking for employer support.
Driving Change through Digital Economy
Notable advancements in Malaysia’s digital economy played a pivotal role in boosting its overall financial inclusion ranking. The “volume of real-time transactions” indicator improved by 13 places to 14th, and “online connectivity” climbed three places to 24th.
Principal Malaysia’s CEO, Munirah Khairuddin, emphasized the significance of digitalization and initiatives that break down barriers to saving and investing. She highlighted Principal’s commitment to supporting Malaysians through e-wallet solutions, enabling them to build optimal portfolios and achieve financial goals.
Singapore Leads as the Most Financially Inclusive Market
Singapore maintained its leading position as the most financially inclusive market in the 2023 survey, echoing its 2022 performance. The country ranked first, second, and third in the government, employer, and financial system support pillars, respectively.
Global Progress in Financial Inclusion
Despite economic challenges, the Global Financial Inclusion Index indicates an overall improvement in financial inclusion worldwide. Key Neufeld, CEBR’s director and head of forecasting, noted the progress even amid supply-side shocks, heightened inflation, and interest rate adjustments.
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