The public will now be able to use e-wallets to pay for the services offered by federal ministries and their departments.

Revealed in a Treasury circular dated 21 January 2022, the notice stated that e-wallet payments will be accepted for both over-the-counter and online transactions (via mobile app or website) at all federal ministries and departments. Additionally, the government will be required to bear the service charges, except for transactions carried out with the Inland Revenue Board (LHDN) and the Customs, as well as non-revenue receipts such as loan repayments. The service charges for these exceptions will be charged to the payer instead.

The circular further stated that e-wallet service providers are only allowed to collect up to 0.5% of the transaction value as its service charge, and no other charges can be imposed. Also, only service providers that have been approved by Bank Negara Malaysia (BNM) can be engaged by the ministries and their departments to provide e-wallet payment services. Meanwhile, federal statutory bodies and state governments are exempted from taking part in this latest development.

In response to this update, several consumer associations have applauded the government’s effort to offer convenience to the public. However, they also requested for options to be provided for individuals who prefer to make cash payments. The chief executive officer of the Federation of Malaysian Consumers Associations (FOMCA), Saravanan Thambirajah, for instance, said that e-wallet payments are starting to become the norm, with many people appreciating its convenience.

The president of the Malaysia Consumers Movement (MCM), Darshan Singh Dhillon, on the other hand, emphasised that the government must ensure that the personal data of users is carefully safeguarded. Furthermore, the government or other relevant parties must strive to resolve all transaction complaints – such as refunds or illegal transactions – swiftly, he said.

(Sources: Treasury Circular, Free Malaysia Today)

• TAGS:
• Bank Negara Malaysia
• BNM
• Darshan Singh Dhillon
• E-Wallet Payments
• E-Wallets
• Federal Ministries
• Federation of Malaysian Consumers Associations
• FOMCA
• Malaysia Consumers Movement (MCM)
• Saravanan Thambirajah