According to a recent survey, three-quarters of Malaysians remain positive about their long-term financial well-being, despite a drop in overall perceptions of financial inclusion from the previous year.
This optimism comes at a time when global economic uncertainties continue to loom large. Experts attribute this positive outlook to Malaysia's robust economic fundamentals and the government's proactive measures to cushion the impact of external shocks. However, they caution that maintaining this confidence will require sustained efforts from both public and private sectors to enhance financial literacy and accessibility.
The Principal Financial Group's research examines people's perspectives of financial inclusion in light of support from employers, the government, and the financial sector.
Financial inclusion refers to the extent to which individuals and businesses have access to usable and inexpensive financial products and services (transactions, payments, savings, credit, and insurance) that fit their needs and are supplied in a sustainable and ethical manner.
While the concept of financial inclusion has gained significant traction in recent years, its implementation faces numerous challenges. These include technological barriers, especially in rural areas, and the need for tailored financial products that cater to diverse demographic groups. Addressing these issues is crucial for Malaysia to achieve its goal of becoming a high-income nation by 2030.
According to the findings, 69% of Malaysians report feeling financially involved, a decrease from 78% last year. This shift in mood is consistent with global trends: in 39 of the 41 markets surveyed this year, overall perceptions of financial inclusion have declined.
Employers are seen as the most beneficial of the three pillars that drive financial inclusion. Over 70% of Malaysians believe their employer plays an important role in promoting financial inclusion, followed by the financial sector (69%), and the government (68%).
This perception underscores the growing importance of workplace financial wellness programs. Many Malaysian companies are now recognizing the link between employees' financial health and their productivity. As a result, there's a rising trend of employers partnering with financial institutions to offer comprehensive financial education and planning services as part of their employee benefits package.
The study also investigates attitudes toward financial education and retirement planning. More over half (57%) of Malaysian workers say their workplace gives access to high-quality financial education materials, while 55% believe their employer helps them move smoothly into retirement.
With the epidemic hastening Malaysia's digital transformation, 85% of respondents believe they can conduct secure online transactions with ease. Furthermore, 69% are confident in the security of their financial data, and 72% believe they have access to the tools needed to construct a financially secure retirement.
Despite these positive indicators, concerns remain about the digital divide in Malaysia. While urban centers have embraced digital financial services, rural areas lag behind due to infrastructure gaps and lower digital literacy rates. The government and financial institutions are working to bridge this divide through initiatives like mobile banking units and digital literacy programs targeting underserved communities.
Finally, 70% of Malaysians feel that the application of artificial intelligence in financial services will improve their access to a variety of money-management tools.
