Malaysia: Central bank releases draft Financial Inclusion Framework 2023-2026
Source: Asia Insurance Review | Mar 2023
Bank Negara Malaysia (BNM) has released a discussion paper on its proposed Financial Inclusion Framework 2023-2026.
The framework sets out a clear vision to advance financial inclusion to elevate the financial wellbeing and standard of living of all residents of Malaysia. It aims to enable everyone to benefit from an accessible and inclusive financial ecosystem; equip individuals and businesses with affordable and suitable financial solutions; and empower consumers with the financial capability to make sound financial decisions and meaningfully participate in the financial system.
The framework features a more expansive and holistic approach to transition the focus from accessibility and usage to achieving broader development outcomes as well as financial resilience and well-being.
BNM says that the implementation of the Financial Inclusion Framework 2011-2020 has led to significant improvements in the accessibility and take-up of basic financial services in Malaysia. Despite the progress made, several barriers and challenges need to be addressed to run the last mile in progressing financial inclusion.
The framework will also take into consideration the alignment of strategies towards new emerging growth angles in financial services, and achievement of the United Nation’s Sustainable Development Goals and ESG propositions for higher value creation. The proposed framework is developed to align with BNM’s Financial Sector Blueprint 2022-2026. A