Page 167 - Special Topic Session (STS) - Volume 1

STS 422 Zarina A.R
1. Introduction
Financial inclusion is critical in reducing poverty and achieving inclusive
economic growth. The usage of financial products and services provide
opportunities for Malaysians to safely save and invest, borrow for productive
activities and have safety nets against financial shocks. Malaysia has made
significant strides in financial inclusion, as a result of intensified efforts over
the years in promoting access and usage of financial services to all segments
of the society.
To date, financial access points are present in almost all sub-districts,
propelled by the introduction of agent banks since 2012. Meanwhile, supply-
side data as provided by financial institutions show that 95% of Malaysian
adults have at least one account at the formal financial institutions. In addition,
Bank Negara Malaysia (BNM) periodically conducts a demand-side survey at
the national level to supplement the supply-side data on financial inclusion, as
well as to identify on-the-ground issues relating to financial access and usage.
The latest survey conducted in 2018 indicated an improved take-up of
financial products and greater usage of digital financial services.

2. Methodology
The financial inclusion measurement for Malaysia is represented by the
Malaysia Financial Inclusion Index (MYFID Index). The information obtained to
calculate the MYFIDS Index is based on supply and demand side data. It is
made up of four (4) components:
 Convenient accessibility
 Responsible usage
 Product take up rate
 Satisfaction level

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