Comparison of the Role of Financial Inclusion, Financial Technology, and Institutional Quality on the Growth of MSMEs in Indonesia and Malaysia

The growth of micro, small, and medium enterprises (MSMEs) is influenced by various factors, including financial inclusion, financial technology (fintech), and institutional quality. Although these three factors have been widely studied, comparative research comparing their roles in Indonesia and Malaysia is still limited. This study aims to analyze and compare the role of financial inclusion, financial technology, and institutional quality on the growth of MSMEs in both countries. The research uses a qualitative approach with a comparative design. Data is obtained through documentation techniques sourced from scientific articles, government reports, international organization publications, and relevant policy documents. Data analysis is carried out qualitatively through data reduction, data presentation, conclusion drawn, and strengthened by source triangulation to increase the credibility of findings. The results of the study show that financial inclusion, financial technology, and institutional quality have an important role in encouraging the growth of MSMEs in Indonesia and Malaysia. Malaysia has shown excellence in institutional quality, financial inclusion levels, and maturity of the fintech ecosystem, while Indonesia is experiencing rapid development but still faces challenges in equitable access to financing, financial literacy, and institutional effectiveness. These findings show that the growth of MSMEs requires synergy between expanding access to finance, strengthening digital innovation, and improving institutional quality. This research contributes through a cross-border comparative perspective that can be the basis for policy formulation in strengthening a sustainable MSME ecosystem.