DIGITAL FINANCIAL INCLUSION OF REFUGEES IN MALAYSIA: A COMPARISON OF DIGITAL AND TRADITIONAL FINANCIAL SERVICES

This study explores the digital financial practices and literacy of refugees in Malaysia, aiming to understand the key factors influencing their adoption of digital versus traditional financial transactions.Drawing on data from the Malaysia Financial Behaviour Survey (2022-2023) conducted by the United Nations High Commissioner for Refugees (UNHCR), the study utilises econometric methods such as Pearson's Chi-square test and the Logit model to assess the relationships between demographic factors and the use of digital financial tools.Key findings indicate that gender, age, country of origin, and access to formal financial services significantly influence the likelihood of adopting digital financial tools, with females and younger individuals more inclined toward digital transactions.The results also highlight a reluctance among respondents with formal bank accounts to adopt mobile payments, suggesting a preference for traditional financial channels.The study identifies important barriers, including limited digital financial literacy and trust in digital platforms, and proposes strategies to enhance financial inclusion through digital means for refugees in Malaysia.Policy recommendations emphasise the need for tailored financial literacy programmes, improved access to Digital Financial Services (DFS), and greater collaboration between financial institutions, policymakers, and Non-Governmental Organisations (NGOs) to promote the financial inclusion of refugees.