KUALA LUMPUR: The government should prioritise building public trust and addressing concerns about security, accessibility, and affordability before fully transitioning into a cashless society, said an expert.
Universiti Sains Malaysia's cybersecurity expert Associate Professor Dr Selvakumar Manickam said the efforts towards moving to a cashless society should also include expanding digital infrastructure, particularly in rural areas, to ensure universal access to e-payment services.
"To successfully transition towards a cashless society, some of the steps the government could take is to invest in expanding digital infrastructure, particularly in rural areas, to ensure universal access to e-payment services.
"Strict consumer protection regulations and effective dispute resolution mechanisms must also be implemented to safeguard users against fraud and ensure fair treatment by service providers.
"The government should also prioritise building public trust and addressing concerns about security, accessibility, and affordability through awareness campaigns and targeted initiatives," he said.
Earlier today, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia could reach the goal of 400 e-payment transactions per capita sooner than expected.
Malaysia currently has a target to achieve this by 2026.
Despite acknowledging the current low per capita transactions, Anwar emphasised the potential for improvement through the collective efforts of digital banks.
Highlighting the importance of inclusivity in the financial sector, Anwar lauded Boost Bank for its efforts in offering services that cater to diverse demographics.
Boost Bank is one of the few banks in Malaysia that will enable users who do not have an existing bank account to be digitally onboarded.
Selvakumar said despite recent data breaches in Malaysia, the government is committed and has made significant strides in developing cybersecurity infrastructure and regulations for e-payment systems.
However, he said, the rapid increase in transactions requires continuous improvement and adaptation to emerging threats in order to safeguard user data and financial assets.
"User education on safe practices, such as strong password management, recognising phishing scams, and secure transaction verification, is also crucial to prevent fraud and maintain trust in the system," he said.