The financial services sector in Malaysia recorded a combined annual growth rate of 10.6% from 2015 to 2022, according to the Department of Statistics Malaysia (DoSM).

The DoSM's Economic Census 2023 data revealed that the number of active financial establishments rose from 15,945 in 2015 to 32,245 in 2022.

The report indicated that in 2022, other financial service activities as well as activities auxiliary to financial services had the highest number of establishments, totalling 26,633, which accounted for 82.6% of the sector.

“This is followed by insurance and takaful, reinsurance and retakaful and pension and provident funding activities (2,942 establishments; 9.1% share) and monetary intermediation activities (2,389 establishments; 7.4% share),” it said.

The DoSM also reported that the gross output value of financial services grew by 5.0%, rising from RM122.4 billion in 2015 to RM172.0 billion in 2022, The Malaysian Reserve reports.

“Monetary intermediation activities were the main contributor to the gross output value, accounting for RM87.9 billion (51.1%).

“This is followed by other financial service activities and activities auxiliary to financial services (RM43.1 billion; 25.1%), insurance and takaful, reinsurance and retakaful, and pension and provident funding activities (RM40.1 billion; 23.3%).”

Furthermore, in terms of value-added, the DoSM reported a 5.1% increase in 2022, reaching RM110.1 billion compared to RM77.6 billion in 2015.

“Monetary intermediation activities contributed the highest value-added compared to other activities, which amounted to RM64.8 billion (58.9%).

“Followed by insurance and takaful, reinsurance and retakaful, pension and provident funding activities (RM25.7 billion; 23.3%), other financial service activities and activities auxiliary to financial services with a share of 17.2% (RM19.0 billion),” it said.

In addition, the statistics department said the value of fixed assets in financial services rose 3.6% from RM245.6 billion in 2015 to RM314.8 billion in 2022.

“The other financial service activities and activities auxiliary to financial services segment was the main contributor to the value of fixed assets amounting to RM287.8 billion (91.4%).

“Followed by monetary intermediation activities (RM17.2 billion; 5.5%), insurance and takaful, reinsurance and retakaful, and pension and provident funding activities (RM9.5 billion; 3.0%),” it added.