Malaysian Consumer Associations Call for Rethink of Cashless Society

The Federation of Malaysian Consumers Associations (FOMCA) is calling on the government to reconsider its support of cashless payments, citing concerns around security and inclusivity in a society without cash access and right to use laws.

Writing for the Daily Express—one of East Malaysia’s largest newspapers—Dr Paul Selva Raj, Deputy President of FOMCA, warns that the ‘rush to build a financial system rooted in cashless transactions’ is leaving behind vulnerable members of society, including seniors and those living in rural areas.

Firstly, he argues that banks should allow counter service for cash services such as deposits and withdrawals. He cites a scam run in Johor Baru that saw fake Samaritans offering to help senior citizens use ATMs, then stealing their card and PIN details to empty their bank accounts.

Cash is particularly valuable to many vulnerable members of society as it is, by design, easy to understand and usable without technical knowledge. Introducing technical barriers to access it runs the risk of people being scammed—as in Johor Baru—or simply being unable to use the money in their account.

Selva Raj also questions the wisdom of allowing outlets to refuse cash payments, pointing to countries often held up as examples of ‘cashless societies’: China and Sweden, with the former recently cracking down on businesses refusing cash, and the latter reevaluating its cashless stance in light of a surge in financial crime fed by digital transactions.

Citing work from the Social and Economic Research Initiative, Selva Raj adds that ‘consumers in semi-urban and rural areas may be disadvantaged due to poor internet coverage’ as well as lack of access to mobile devices that facilitate cashless payments. Ultimately, the think tank asks: ‘if cashless transaction becomes a basic social and public function, are we meeting the needs of the most vulnerable members of society?’

Alongside offering support and education to those who struggle to engage with cashless transactions, ensuring cash remains accessible and usable will help create a society where everyone—regardless of age, location or financial status—is able to spend and save as they choose.