Cashless payment methods should be expanded

SHAH ALAM - All businesses must be able to utilise cashless payment options to reduce the illegal use of counterfeit currency in the country.

Economist Professor Emeritus Tan Sri Anuwar Ali said small traders and entrepreneurs should imitate foreign countries like China, where nearly all merchants accept payments through cashless transactions.

“It indicates that Chinese merchants are using less cash. Therefore, I believe it is possible if the optimum approach is found, particularly to satisfy the trade.

“It is imperative that small traders adopt the cashless payment technique as a habit. The more people use it, the better it is to avoid the crime of the use of counterfeit money," he told Sinar, yesterday.

Meanwhile, a banking lecturer specialising in Islamic finance at the Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM) Dr Mohd Faisol Ibrahim said traders were also encouraged to use digital payment methods by leveraging FinTech.

"These include using QR codes, online transfers, e-banking and several other digital methods.

"It can avoid counterfeit money and at the same time can avoid the problem of robbery and is safer and more secure," he said.

He added that traders can also use technological sophistication through the purchase of special tools used to detect counterfeit money.

"Through the special tool, the original money will be emblazoned with a number of security items that exist on every paper note whether it is RM1, RM5, RM10, RM20, RM50 or RM100. Counterfeit money, on the other hand has no security identity on each banknote.

"Besides, traders also need to put warning notices on their business premises that counterfeit money is not accepted and a report will be lodged against those who tried to deceive traders.

"This will indirectly give fear and warning when the activities are noticed by the traders," he added.

He said the installation of closed-circuit television (CCTV) in every business premises was important as a preventive measure to deter fraudsters from committing such crime.

“In addition, some examples of counterfeit money should be placed in business premises so that the public is aware and the perpetrators know that their fraud activities and techniques are being monitored by traders," he added.