KUALA LUMPUR, Dec 9 — Malaysia will see promising growth in the electronic payment system beginning 2015 onwards with reform measures introduced by Bank Negara Malaysia. 

The central bank’s Director of Payment Systems Policy Department Tan Nyat Chuan said consumers and businesses would have to adjust their operations to meet the changes.

“By 2020, we target to be more comparable, very much closer to advanced countries,” Tan told reporters on the sidelines of the Payment System Forum and Exhibition here today.

Bold measures and commitment by all stakeholders are required to drive the migration to electronic payments, he said in his presentation earlier.

Despite having some positive indicators, Tan said Malaysia still lags behind in its migration to electronic payments.

While having a high number of bank account holders and internet banking subscribers, the country experienced a low number of active internet banking subscribers and high usage of cheques, he noted.

Tan pointed out that the country needs to intensify its efforts to migrate to electronic payments in order to remain competitive, in line with global developments.

To encourage widespread adoption of electronic payments, Tan said several measures would be undertaken such as addressing distortions and correcting price signals, widening accessibility, enhancing security and value-added services as well as building awareness.

“Bank Negara is undertaking a review of the payment card industry to facilitate accelerated deployment of point-of-sale (POS) terminals to encourage wider acceptance of debit cards for public convenience,” he said.

The one-day forum is part of the educational campaign and nationwide roadshows organised by the central bank in collaboration with the Association of Banks In Malaysia and the Association of Islamic Banking Institutions Malaysia.

The event was attended by more than 400 participants from small and medium enterprises (SMEs), government agencies and corporate and insurance sectors.

The forum, which aimed to create awareness on the range of electronic payment solutions available, also featured testimonials and success stories from SMEs and businesses which have successfully migrated to e-payment such as Kim Teck Cheong Sdn Bhd and AIA Bhd. — Bernama