The Association of Banks in Malaysia (ABM) is encouraging businesses and members of the public to adopt e-payment to transfer funds and make bill payments.
Successful migration to e-payment could drive efficiency gains and cost savings equal to around 1% of Malaysian gross domestic product annually, according to ABM executive director, Chuah Mei Lin.
Chuah told reporters on 13 February: "ABM and our member banks are in full support of the national agenda for the migration to e-payment and have worked with Bank Negara Malaysia (BNM) on a nationwide campaign since October 2013 to promote Interbank Giro (IBG)."
According to Chuah, members of the public should make use of reduced fees for IBG transactions performed online, especially because after 1 April, commercial banks will charge a cheque processing fee of MYR O.50 ($0.151) on the issuer or drawer of a cheque.
This fee is on top of the existing stamp duty of MYR O.15 per cheque.
IBG fees were reduced to a maximum fee of MYR 0.10 since 2 May 2013 in order to promote the use of e-payments.
BNM, Malaysia’s central bank, aims to increase the number of e-payment transactions per capita from 56 transactions in 2012 to 200 by 2020.
Chuah also said that the central bank aims to reduce cheque issuances by more than half from 204m in 2012 to 100m by 2020.
Chuah says higher penetration of broadband, an innovative payment system and strengthened security make now the right time for Malaysians to migrate to e-payment.