The recently announced eBelia programme benefiting approximately two million eligible Malaysian youths is definitely a step in the right direction as Malaysia marches towards a cashless future.
This is in line with the government’s long-term aim for Malaysian society to go cashless by 2022 as was spelt out in the Malaysia Digital Economy (MyDigital) blueprint.
The blueprint – which guides the trajectory of Malaysia’s digital economy – outlined the efforts and initiatives needed to attain our digital economy goals moving forward.
Under the programme, valued at RM300 million, eligible applicants would be able to claim RM150 in the form of e-wallet credit from one of the participating e-wallets – Boost, BigPay, ShopeePay or Touch ’n Go eWallet.
Users will also enjoy additional incentives such as cashbacks, vouchers and reward points throughout the campaign courtesy of their chosen e-wallet.
Thus far, over 1.75 million youths all over the country have redeemed RM262.5 million in eBelia credit since its inception on June 1.
The main purpose of eBelia is to relieve some financial burden suffered by Malaysian youths and full-time students. However, its underlying goal of promoting cashless spending within Malaysian society will have a positive impact on our digital economy in the long run.
The most immediate reason why we need to embrace a cashless society today is the ongoing pandemic which has made “non-contact” a norm.
Physical cash payments could be harmful vectors carrying the virus. Scientists at the Australian Centre for Disease Preparedness found that the Covid-19 virus may remain infectious for weeks on banknotes.
This makes high-touch surfaces like physical currency a critical transmission risk that should be avoided.
The pandemic has also given rise to an increase in online shopping and e-commerce, which incentivises more individuals to select cashless payment options.
Malaysia is home to a plethora of e-wallet and digital banking pioneers which have paved the way for improved digital financial opportunities and products for the benefit of Malaysians.
Most major e-commerce platforms in the country have their own e-wallets that if used as the primary payment option, provides additional cashbacks, vouchers and free shipping perks to users.
On the back of increased e-commerce spending, a UOB survey found that contactless payment and transaction services have become the preferred payment options for Malaysians in light of the pandemic.
QR payments and internet banking were the most popular followed by mobile wallets and debit or credit cards.
This acceleration in digital payment adoption is also due in part to our robust financial technology (fintech) ecosystem.
Latest rankings by the World Economic Forum’s Networked Readiness Index (NRI) – which measures the propensity for countries to exploit the opportunities in the internet sector – placed Malaysia at 34th, ahead of counterpart emerging economies like India, Indonesia, and Brazil.
Suffice to say, our flourishing fintech ecosystem is a key driver for the nation’s digital economy now, and in the long term.
There is enough room for fintech players to swiftly innovate, undergirded by a robust digital financial ecosystem.
The trend of going cashless has seemingly captured Malaysian society across all socio-economic backgrounds.
Even direct government aid is being primarily done on a cashless basis, where application and payments for Bantuan Prihatin Rakyat and Geran Khas Prihatin are made electronically and online.
Cashless transactions also provide regulators an e-trail, which makes it hard for counterfeiters or criminals to launder money.
Enforcement-wise, cash serves as the lifeblood of the underground economy. As we move towards a more cashless future, it will lead to higher transactional security, better coordination, enhanced communication on anticorruption initiatives and greater ease of sharing information.
To that end, it will also help the government to become more efficient in public service delivery, especially in curbing leakages, fraud and corruption.
Online payments lessen direct contact points between citizens and public officials thus reducing opportunities for public officials to engage in corrupt activities.
Given that most users of digital banking and e-wallets are youths, it therefore makes perfect sense to launch eBelia as an impetus to make cashless transactions a codified norm in the country.
The older minds may take some time adjusting to this change, but younger digital natives that have grown up with this technology should be encouraged more in this regard to set the stage for a fully cashless society in the near future.
The pandemic is not an excuse for us to let up on our future. As trends have shown, that future is a cashless one, so let us take the necessary measures to get there so that we are not left behind in the post-pandemic digital revolution.
Comments: letters@thesundaily.com
