Cashless payment becomes main choice

SHAH ALAM - About 80 per cent of the people in Malaysia are expected to go cashless for the next 10 years.

Economic Analyst from Asia e University Professor Datuk Dr Shazali Abu Mansor said a projection of 50 per cent of the people in the country that utilise the cashless payment method can be achieved in another five more years.

According to him, so far there were only about 30 per cent of consumers who make cashless payments, as most places especially in rural areas still use cash to make purchases.

“It would be impossible to achieve 100 per cent cashless payment. So, the majority number (of people who were already using the cashless payment method) is already considered a success because this required a good system.

“It is estimated that in 10 years, we will be able to reach 80 per cent as this amount can be considered as having the best technology.

“Now, the percentage is low because many rural areas are still far behind in terms of having digital facilities.

"If you go to the supermarket, there are many senior citizens who still pay using cash even the 'kuih' sold at roadside stalls can only be bought using cash,” Shazali told Sinar Harian.

Economic expert Dr Nungsari Ahmad Radhi said Malaysia has switched to cashless payment methods after the Movement Control Order (MCO) took place due to the Covid-19 pandemic.

He added that making cashless payments was better because of the cost and efficiency in making a transaction.

"It is also faster and cheaper. Thus, increasing the productivity for the economy,” he said.

Commenting on the Communications and Multimedia Ministry's statement calling for the legalisation of digital money and cryptocurrency as part of cashless payment, he said this could be regulated by Bank Negara Malaysia and the Finance Ministry.

Nungsari added that Bank Negara and the Finance Ministry needed to provide a clearer legal policy framework before allowing the use of cryptocurrency in the country.