Analysis of Key Factors Influencing Financial Wellbeing for Persons with Disabilities in Malaysia Using PLS-SEM Approach

Abstract

In the current world, financial wellbeing has been recognized as an incredibly important indicator of overall quality of life, specifically for disadvantaged groups, which includes persons with disabilities (PWDs). Despite growing awareness, few studies have examined factors influencing financial wellbeing, such as financial literacy, financial inclusion, and social support for PWDs in Malaysia. Grounded in Self-Determination Theory, financial literacy improves competencies, financial inclusion fosters autonomy, and social support fulfils relatedness on interpersonal support. To examine this relationship, the data were collected through questionnaires using 5-point Likert Scales and were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings show financial literacy, financial inclusion, and social support significantly influence financial wellbeing. These findings highlight the significant importance of financial literacy, financial inclusion, and social support in enhancing PWD’s financial wellbeing. This study contributes to the existing literature for PWDs and empirical evidence for financial wellbeing in the context of Malaysia. The present findings offer practical implications for policymakers and financial institutions regarding the inclusive financial education, accessibility, and assistance initiative to support financial wellbeing for PWDs.