Bank Negara Malaysia Sets 2026 Priorities for Inclusive and Digital Financial System
Bank Negara Malaysia (BNM) has outlined a set of priorities for 2026 aimed at strengthening financial inclusion, supporting small and medium enterprises (SMEs), and advancing secure digitalisation across the financial sector. According to its Annual Report 2025, the central bank will expand financial literacy programmes, reform insurance and takaful frameworks, and introduce scalable financing models for SMEs. The initiatives form part of a broader effort to build a resilient financial system capable of supporting Malaysia’s digital transformation and long‑term economic development.
Strengthening the Financial Sector Blueprint Implementation
BNM said that much of its recent work has focused on implementing the remaining strategies under the Financial Sector Blueprint 2022–2026. The framework aims to ensure Malaysia’s financial system remains accessible, resilient and capable of supporting digital innovation and sustainable development.
“These strategies aim to have a financial system that is accessible, resilient and ready to support the country’s digital transformation and sustainable development agenda. This means widening financing options for SMEs and micro entrepreneurs, better financial skills and literacy across society, and enabling responsible innovation that delivers benefits safely and at scale,” — Bank Negara Malaysia
Efforts to strengthen SME financing are particularly significant for Malaysia’s broader digital economy. SMEs and mid-tier firms increasingly play a central role in technology adoption and innovation, as highlighted in initiatives supporting mid-tier companies shaping Malaysia’s digital economy.
Transition to Guarantee Schemes for SME Financing
From 2026, BNM will shift its SME support funds from direct lending to a guarantee-based model. The move is intended to create a more scalable financing framework that distributes risk more effectively across the financial system.
“This shift reflects the need for scalable financing models, with the financial system playing a critical role in sharing risks more effectively. Targeted guarantee schemes can reduce collateral needs and support a higher number of potential SME beneficiaries,” — Bank Negara Malaysia
The central bank noted that guarantee schemes could encourage banks and development financial institutions to lend to viable but underserved segments while drawing in private financing for priority sectors. These include innovation-driven activities, business transformation initiatives and climate-related investments.
BNM said the transition framework is being developed in consultation with SME associations and financial institutions to ensure alignment and practical impact. Improved financing access is also expected to complement wider digital adoption across sectors, including initiatives aimed at accelerating the digital transformation of cooperatives in Malaysia.
Digital Banking Expands Access to Financial Services
Digital banking has also become an important channel for expanding financial inclusion. By the end of 2025, all five licensed digital banks in Malaysia had commenced operations.
Together, these institutions have served around 2.4 million customers and accumulated total deposits of RM4.2 billion. Approximately 65 per cent of customers come from previously unserved or underserved groups, including low-income households, gig workers and young people.
Some digital banks have also begun providing small-value financing. Of the RM1 billion in financing approved so far, around 34 per cent has been directed to unserved and underserved customers, indicating early progress in expanding access to credit.
Advancing Open Finance, AI Governance and Digital Identity
Looking ahead, BNM plans to advance secure digitalisation through open finance frameworks, trusted digital identity systems and stronger governance for artificial intelligence (AI) applications within financial services.
“Public awareness efforts through education and financial literacy programmes will also be strengthened. These measures aim to ensure that AI adoption enhances financial services in ways that deliver real value, such as stronger fraud detection, better customer experience, and improved risk management,” — Bank Negara Malaysia
The central bank said it will support these efforts by developing industry guidelines, encouraging knowledge sharing across financial institutions and strengthening talent development. Alongside benchmark reforms transitioning from the Kuala Lumpur Interbank Offered Rate (KLIBOR) to the Malaysia Overnight Rate (MYOR) and MYOR‑i, these measures are intended to reinforce the stability and long-term adaptability of Malaysia’s financial system.
