RM100 e-tunai not a pre-election sweetener - Loke

PUTRAJAYA - The government's allocation of RM100 e-tunai to all adults with an annual income of RM100,000 and below is not a pre-election sweetener but rather an initiative to promote and encourage digital economy transactions without cash, said the Transport Minister Anthony Loke Siew Fook.

Loke said the move aims to assist and encourage the adoption of digital payment methods, specifically e-wallets, in the country.

"The government plans to provide this credit to 10 million eligible citizens to drive the digital economy forward.

"By doing so, we aim to familiarise Malaysians with the use of e-wallets and encourage a shift towards cashless transactions," he said in a statement today.

The promotion of digital transactions is seen as a critical step in developing the digital economy, and the government believes that the citizenry's active participation is essential to achieve this goal.

Loke stressed that this initiative is not just a handout but rather a strategic move to support the digitalization of the economy.

"Earlier, Prime Minister Datuk Seri Anwar Ibrahim had announced that the government would provide RM100 e-tunai to all adults with an annual income of RM100,000 and below.

"The initiative is expected to benefit over 10 million citizens aged 21 and above, covering both the B40 and M40 income groups," he said.

The allocation for this initiative is estimated to be around RM1 billion, and its implementation is expected to create a significant number of e-wallet users, potentially reaching 10 million people.

This would play a crucial role in promoting the use of digital platforms for financial transactions in the country.

Loke highlighted that the current emphasis on cash payments makes it essential to drive the transition towards digital payments.

The government envisions that with 10 million citizens receiving the e-tunai, the number of e-wallet users will increase accordingly, further boosting the use of digital payment platforms.

"The announcement of the Madani Economy (Ekonomi Madani) by the Prime Minister is part of an economic framework designed to achieve specific goals.

"We emphasise that the vision is to position Malaysia among the top 30 economies globally, increase income levels, foster inclusive communities, and build a competitive economy," he said.

He further clarified that the initiatives introduced, including the e-tunai scheme, are not mere electoral incentives but a fundamental framework to achieve the targeted vision.

The government plans to implement these initiatives gradually through annual budgets and other appropriate measures.