KUALA LUMPUR (Nov 9): The implementation of the cash transaction limit (CTL) is seen as yielding benefits to the economy over the long term, said Universiti Tun Abdul Razak (Unirazak) economist, Prof Emeritus Dr Barjoyai Bardai.
He said this will happen when consumers begin the switch to digital banking with digital money, which will make conducting business more efficient and effective.
"When consumers get used to using digital currency, they will be more willing and encouraged to undertake business dealings, and so business dealings can get bigger and have a positive impact on the economy.
"The quality of life of people will also improve when more undertake online transactions, which saves time. This means consumers need not go to the bank for formal business matters,” he told Bernama.
However, Barjoyai said Bank Negara Malaysia (BNM) needs to have a code system such as that in developed countries to detect all online business to prevent terrorism activities and curb the shadow economy.
He also said the use of a code with an identification number can be used and would enable the Government to obtain data to observe the market economy.
"This means, BNM can detect individuals who have not paid their taxes or are undertaking suspicious business dealings,” he added.
On Thursday, BNM deputy governor and chairman of the National Coordination Committee to Counter Money Laundering, Datuk Abdul Rasheed Ghaffour was reported as saying the Government plans to enforce a CTL of RM25,000 from next year.
It is a means of strengthening the financial integrity of the country and overcome the abuse of cash in respect of illicit activities.
The deputy president of the Federation of Malaysian Consumers Associations, Mohd Yusof Abdul Rahman said the issue would have no major impact on consumers as most have switched to transactions using cheques or online banking.
"So, there is no issue. The use of cash at present may have even reduced, seeing how it exposes one to risks. As such, it is normal that business transactions involving large sums of up to RM20,000 for example, is safer done online or using cheques.
"Usually, most people use cash as they do not want transactions to be detected. If cheques are used, they can be traced and we worry of the possibility that they can be used for illicit purposes. Even wholesalers now rarely use cash transactions,” he added.
Meanwhile, a private sector worker, Syazwan Husaini Sanusi, 40, said implementation of the CTL can enhance and strengthen business transactions via electronic platforms such as 'e-payment' or 'digital pocket/e-wallet', which are clearly much safer.
"To me, the implementation is a very good initiative which indirectly helps control criminal activities such as bribery and corruption.
“We also see rampant scamming activities at present,” he added.