Malaysia Records Broad-Based Gains in Financial Inclusion, According to Global Financial Inclusion Index from Principal®
The annual Index ranks 42 markets on three pillars of financial inclusion, tracks global and regional progress.
Malaysia Records Broad-Based Gains in Financial Inclusion, According to Global Financial Inclusion Index from Principal®
- Malaysia was one of only two markets that recorded increased scores in financial inclusion support from employers, the government and financial system in 2025.
- The market remains ranked 21st for overall financial inclusion with notable jumps in rank for employer support.
- Asia Pacific performance was mixed as the region's overall score declined by 0.5 points year-over-year.
Kuala Lumpur, OCTOBER 21,2025 - Malaysia was one of just two markets globally to post year-over-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 (the Index) from Principal Financial Group® and the Centre for Economics and Business Research (Cebr).
Notably, employer support in Malaysia rose 0.8 points year-over-year, while government support and financial system support edged up 0.7 points and 0.1 points respectively.
Now in its fourth year, the Index examines how governments, financial systems, and employers enable greater levels of financial inclusion across 42 markets. The report provides a comprehensive and comparative evaluation of financial inclusion on a global scale, ranking markets on a relative basis in addition to an absolute score. Globally, after two years of measurable improvements, progress in financial inclusion plateaued.
Employer support slowed globally this year due to economic and business pressures, but Malaysia bucked this trend, jumping seven spots in the global rankings to seventh. While other markets experienced declines across the employer support indicators, Malaysia rose in the rankings for two of the four. The sharpest progress was seen in the provision of financial guidance and support indicator, where Malaysia climbed eight spots to 23rd.
In the government support pillar, Malaysia's rank held at 25th while the score increased by 0.7 points, underpinned by improvements across education and access-related indicators (including availability of government-provided financial education, online connectivity, and retirement-related measures). Taken together, these shifts point to a gradually strengthening foundation for long-term financial resilience.
Within the financial system support pillar, Malaysia's score ticked up slightly, supported by credit access, small and medium enterprise (SME) enablement, and business confidence-but the rank moved down three places to 19th as other markets recorded faster gains.
Munirah Khairuddin, chief executive officer & head, 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."
Explore the full report and learn more about the Global Financial Inclusion Index here.
Key findings from the Global Financial Inclusion Index:
- The overall global financial inclusion score stands at 49.4 out of 100—a marginal drop of 0.2 points compared to 2024.
- However, this is markedly higher than 41.7 when the Index launched in 2022. In 2025, 20 markets showed annual improvements in their financial inclusion scores, while 19 out of the 42 markets analyzed experienced declines.
- Employer support slowed globally, with the worldwide score falling 0.6 points.
- Thirty five of 42 markets (83%) registered declines in their employer support scores - strongly suggesting that the impact of geopolitical and trade risks on business confidence have caused companies to adopt more conservative approaches to employee benefits and flexibility initiatives.
- As employers pulled back, governments and financial systems stepped up efforts to enable better access to, and understanding of, financial products and services.
- Globally, the government support score rose 0.6 points, increasing in every major region and, across the wealthier regions of North America, Europe and the Middle East, the financial system score also rose. Thirty-five markets showed year-over-year improvements for either or both government and financial system scores.
- Detailed modelling shows that higher financial literacy levels result in improved household debt management and lower borrowing costs.
- A 1% improvement in financial literacy levels is associated with a 2.8% reduction in defaults on household loans and a 6.7% reduction in household debt-to-income ratios. This has a discernible GDP benefit over the long term.
Increased financial inclusion in Malaysia has meaningful implications for the people of Malaysia - notably in terms of greater access to financial services and resources, and economic empowerment.
Notes to editors
- "Global" encompasses the 42 markets contained within the Index
To ensure consistency in year-on-year comparisons, the 2024 results presented in this year's GFIl have also been recalibrated to reflect the reintroduction of Israel into the Index. This adjustment ensures both 2024 and 2025 rankings, along with other historical results prior to 2024, are based on an identical market sample. As a result, minor shifts may appear in some markets' positions relative to the originally published 2024 results, though underlying scores remain methodologically consistent.
About the Global Financial Inclusion Index
The Global Financial Inclusion Index ranks 42 markets on three pillars of financial inclusion— government, financial system, and employer support-using data points across public and survey-based sources. These pillars represent the key stakeholders responsible for promoting financial inclusion across the population. The Index explores the challenges and opportunities surrounding increasing access to useful and affordable financial products and services that meet their needs-transactions, payments, savings, credit, and insurance, etc.
The Index calculation was conducted in partnership with the Centre for Economics and Business Research (Cebr). The methodology combines various data sources into one unified measure of financial inclusion at the market level.
About Principal Financial Group
Principal Financial Group® (Nasdaq: PFG) is a global financial company with approximately 20,000 employees' passionate about improving the wealth and well-being of people and businesses. In business for 146 years, we're helping over 70 million customers' plan, insure, invest, and retire, while working to support the communities where we do business and building an inclusive workforce. Principal® is proud to be recognized as one of the 2025 World's Most Ethical Companies' and named as a Best Place to Work in Money Management'. Learn more about Principal and our commitment to building a better future at principal.com.
1 As of June 30, 2025
2 Ethisphere, 2025
3 Pensions & Investments, 2024
About Centre for Economics and Business Research (Cebr)
The Centre for Economics and Business Research (Cebr) is an independent economics consultancy with a reputation for sound business advice based on thorough and insightful research. Since 1992, Cebr has been at the forefront of business and public interest research, providing analysis, forecasts and strategic advice to major UK and multinational companies, financial institutions, government departments and agencies and trade bodies. For further information about Cebr please visit www.cebr.com.
The Global Financial Inclusion Index is a proprietary model output based upon certain assumptions that may change, are not guaranteed, and should not be relied upon as a significant basis for an investment decision.
Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/-dealers. Principal Asset Management$™ is a trade name of Principal Global Investors, LLC. Principal Global Investors leads global asset management. Referenced companies are members of the Principal Financial Group®,| Des Moines, Iowa 50392.
© 2025 Principal Financial Services, Inc. Principal®, Principal Financial Group", and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and services marks of Principal Financial Services, Inc., in various countries around the world.
4877483-102025
Disclaimer: The information contained herein has been derived from sources believed to be reliable and is current as of the date of publication. No representation or warranty is made nor is there acceptance of any responsibility or liability made as to the accuracy, completeness or correctness of the information contained herein. Expressions of opinion contained herein are subject to change without notice. People wishing to rely upon this information should consult directly with the source of information or obtain professional advice. This material had not been reviewed by the Securities Commission Malaysia.