The Malaysian government is pushing for a cashless society in order to make it harder for corruption to take place. According to Tun Mahathir, cashless transactions will leave a data trail and this enables authorities to track suspicious activities.
During the launch of RapidKL’s unlimited-ride monthly pass, the Prime Minister had mentioned that each cashless transaction is recorded and it is easier to find out if there are any attempts to bribe. He also added that corruption is an indirect contributor of rising costs since projects can become more expensive as there is a need to pay certain parties to obtain approval.
According to Malay Mail’s report, Tun Mahathir had previously expressed interest to pursue for a cashless Malaysia and he was inspired by India’s initiatives to combat cash-facilitated crime and corruption. Two years ago, the Indian government had removed their large 500 and 1,000 Rupee notes from circulation in an effort to crack down on corruption and tax evasion. As a result, this has helped to increase cashless adoption in the country.
At the moment, there are more than 40 authorised e-money issuers in Malaysia that are able to offer e-wallets. Despite the large number of providers, Malaysia is still very dependent on cash.
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