A COMPARATIVE STUDY ON FINANCIAL LITERACY BETWEEN INDONESIA AND MALAYSIA

Abstract

Financial literacy has become an essential competency for promoting financial inclusion, financial well-being, and effective participation in increasingly digitalized financial systems. This study aimed to compare financial literacy research in Indonesia and Malaysia by identifying dominant research themes, examining determinants and outcomes of financial literacy, exploring similarities and differences between the two countries, and deriving implications for future policy and educational initiatives. The study employed a qualitative comparative design using qualitative content analysis. Data were obtained from twenty peer-reviewed journal articles published between 2023 and 2026, consisting of ten studies from Indonesia and ten studies from Malaysia. The findings revealed five major themes: determinants of financial literacy, digital financial literacy and fintech adoption, financial literacy and financial inclusion, financial literacy and financial well-being, and financial education and policy interventions. In both countries, education, income, family financial socialization, financial experience, and digital technology exposure were identified as key determinants of financial literacy. It also found that financial literacy positively contributes to financial inclusion, responsible financial behaviour, fintech adoption, and financial well-being. While both countries share similar trends, Malaysia demonstrates a more institutionalized approach to financial education, whereas Indonesia places greater emphasis on digital financial inclusion. The study recommends strengthening digital financial literacy programs, policy support, and cross-sector collaboration to enhance financial capability and sustainable economic participation across Southeast Asia