KUALA LUMPUR: Malaysia recorded the biggest improvement in the 2026 Global Financial Inclusion Index, climbing six places to 15th globally, driven by stronger financial system and employer support.
Published by Principal Financial Group and the Centre for Economics and Business Research, the index assessed 42 markets across three areas: government, financial system and employer support.
Malaysia’s overall financial inclusion score rose five points year-on-year to 58.2, above the global average of 52 and Southeast Asian average of 48.
The improvement was largely driven by stronger financial system support, with Malaysia climbing six places to 13th globally.
Its score increased 8.1 points to 59.5, supported by higher real-time transaction volumes, which helped the country advance seven places to ninth in that category.
Malaysia also recorded smaller improvements in its rankings for access to capital, access to credit and business confidence.
The country ranked fifth globally for employer support, up two places from a year earlier, with a score of 72.6.
This was above the global average of 65.7 and Southeast Asian average of 69.3, despite employer support declining in 35 of the 42 markets assessed.
However, Malaysia slipped one place to 26th for government support, with a score of 53.6.
Principal Asset Management Bhd chief executive officer Munirah Khairuddin said Malaysia’s improved ranking showed how financial sector modernisation could broaden access to funding and strengthen business confidence.
“Its efforts to digitise financial services have brought more people into the system and transformed access to financial information and products,” she said in a statement.
Munirah said the improvements had also contributed to stronger growth among small and medium enterprises and greater business confidence, alongside a strengthening labour market and gross domestic product growth reaching multi-year highs.
The index classified Malaysia as a “Stable Incumbent” among potential fintech leaders, reflecting its established digital financial infrastructure and position as a digital financial centre.
Munirah said sustaining the progress would require continued investment in digital finance infrastructure and strategies, supported by stronger governance and consumer safeguards.
Initiatives such as the Digital Economy Blueprint, Bank Negara Malaysia’s Financial Sector Blueprint and the Securities Commission’s Capital Market Masterplans had helped develop the country’s fintech ecosystem.
Globally, financial inclusion reached a record high in 2026, with the overall score rising to 52.0, its highest since the index was introduced.
However, employer support declined for the second consecutive year, falling 2.9 points to 65.7, while consumer perceptions of financial inclusion dropped to their lowest level on record.
The index attributed the widening gap between support and consumer perceptions to rising expectations and cost-of-living pressures, suggesting that existing support systems were not keeping pace with consumer needs.