Malaysia’s Finance Ministry will make every payment for government services cashless by 2022, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said on 8 June. He was officiating the Malaysian Institute of Accountants (MIA) Conference 2021.
The plan sits under MyDigital, the national digital economy blueprint, which maps how the country moves toward a more connected economy on the Industrial Revolution 4.0 path. Zafrul said going cashless would bring higher transactional security, better coordination, closer communication on anti-corruption efforts and easier sharing of information.
“As at the end of last year, 60 per cent of the government’s total collection was through e-payment,” he said.
Fewer hands, less room for leakage
The minister said the government has worked steadily on good governance, more efficient public service delivery and cutting leakages, fraud and corruption. Digitalisation serves that goal in a simple way. Fewer points of direct contact between citizens and public officials leave fewer openings for abuse.
Zafrul pointed to two changes already made. The government has moved to electronic identification cards and biometric proof of identity for citizens, which speeds up direct assistance and keeps it inclusive, accessible, transparent and accountable. Most direct aid is already paid without cash too. Applications for Bantuan Prihatin Rakyat and Geran Khas Prihatin were made online, and the payments were made electronically.
A message for the accountants
Zafrul called accountants an important influence on informed decisions and said they have a part in driving digitalisation. He credited MIA with steady efforts on digital leadership and transformation through its MIA Digital Technology blueprint.
He also thanked the institute for its advocacy on tax governance, which targets non-compliance and systemic inefficiencies. Broadening the tax base, he said, including taxing the shadow economy and improving compliance and administration, will lift collections. That money, in his words, is “critical to enable the government to deliver more assistance during times of crisis, as well as for the nation’s developmental expenditures and longer-term reform agendas.”
MIA has also argued that sustainable development goal reporting belongs in corporate reporting. Zafrul agreed and said accountants are well placed to put a cost on climate impacts such as carbon and greenhouse gas emissions, to give independent assurance on sustainability processes, and to report on the results for decision-makers.
The three-day conference is meant to upskill accountants in sustainability, climate solutions and digital empowerment, drawing on the profession’s core skills and ethics to support business continuity.
Sources
- All payments for govt services to be made on cashless basis by 2022 – Tengku Zafrul
- Finance Minister: Payments For Government Services To Go Cashless By 2022
