KUALA LUMPUR, Nov 8 ― 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 through digital money, which will make conducting business more efficient and effective as such.

“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 in the form of a doubling and also business volume.

“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 realise efforts at preventing terrorism activities and 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, they (BNM) can detect individuals who have not paid their taxes or undertaking suspicious  business dealings and fleeing the authorities,” he added.


Yesterday, BNM deputy governor and chairman of the National Coordination Committee to Counter Money Laundering, Datuk Abdul Rasheed Ghaffour was reported as saying the government planned 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 had at present switched to transactions using cheques or online.

“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, it can be detected ( through transactions) and we worry of the possibility that it 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 the electronic platform such as “e-payment” or “digital pocket/ e-wallet”, which is 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 within the community at present,” he added. ― Bernama