Malaysia Is Among the Few Markets in Asia To Improve Financial Inclusion In 2025
Malaysia has emerged as one of the few countries to record meaningful progress in financial inclusion in 2025. It was one of only two markets worldwide to post year-on-year gains across all three pillars of the Global Financial Inclusion Index: government support, financial system support, and employer support.
Malaysia Rises in 2025 Index with Strong Employer Support
The 2025 Index, published by Principal Financial Group together with the Centre for Economics and Business Research, shows that employer support in Malaysia rose by 0.8 points. Government support and financial system support also saw modest improvements of 0.7 points and 0.1 points, respectively.
Thanks to these gains, Malaysia now ranks 21st globally. It has also made powerful progress in employer-related measures, climbing seven places to reach seventh position worldwide.
Initiatives That Benefit the Economy
The findings stand out as most markets experienced a decline in employer support due to economic pressures. In contrast, Malaysia benefited from domestic initiatives such as the Progressive Wage Policy pilot, the restructuring of the EPF’s “Account 3,” and the growing use of Earned Wage Access solutions. Business confidence, SME expansion, and better access to credit also contributed to the slight uplift in financial system support.
On a global level, overall financial inclusion has largely stalled. The combined score for the 42 markets assessed slipped by 0.2 points to 49.4 out of 100. Employer support weakened in most regions, dropping by 0.6 points. Government support, however, increased by 0.6 points as countries continued to invest in better access to financial products and greater financial education.
Stronger Policies, Stronger Economy: Malaysia’s 2025 Advantage
The report also noted that stronger financial literacy continues to deliver measurable economic benefits. A 1% rise in financial literacy is associated with a 2.8% reduction in household loan defaults and a 6.7% drop in debt-to-income ratios—indicators that point to healthier long-term financial stability.
Malaysia’s progress reflects the impact of consistent structural reforms and long-term policy investment, helping build a more resilient and inclusive financial landscape despite broader global uncertainty.
3E Accounting Is Here to Help
If your company is exploring opportunities or compliance requirements related to Malaysia’s evolving financial landscape, 3E Accounting can guide you with tailored, practical support. Contact us today to ensure your business moves forward with confidence.
