KUALA LUMPUR: Malaysia is on track to achieve the Financial Sector Blueprint target of 400 electronic payment (e-payment) transactions per capita by 2026 supported by the continued acceptance of cashless transactions by Malaysians.
Universiti Kuala Lumpur Business School economic analyst Associate Professor Aimi Zulhazmi Abdul Rashid said Malaysia's rate of e-payment transaction was high, with the expansion of the digital economy accelerating after the Covid-19 pandemic years.
He said interconnectivity had improved over the years, beginning with the Jendela project launched by the government a few years ago, and followed by the implementation of the 5G network.
"We are on track (to achieve 400 e-payment transactions per capita) based on current developments, unless there are major events like a geopolitical crisis or a pandemic that affect the global economy," he told the Business Times yesterday.
Citing a survey by financial technology (fintech) company, Ayden, Aimi said Malaysia had emerged as the global leader in mobile wallet adoption with six out of 10 people using it for transactions.
He said more than one-third of consumers no longer carried physical wallets in Malaysia.
"Apart from mobile wallets, shoppers surveyed also liked QR (quick response) codes. Malaysians were the fastest to adopt the payment method globally. But the main concern is the cybersecurity in the implementation of the e-payment system."
Aimi urged ministries and agencies to quickly adopt digital technologies in their operations as well as interface, adding that this was likely being hampered by budget constraints and the need to upgrade employees' skills.
According to data by Bank Negara Malaysia, e-payment adoption continued to increase in 2023 to 11.5 billion transactions compared with 9.5 billion in the previous year.
In its Annual Report 2023, it said Malaysia achieved 20 per cent growth, to 343 transactions per capita, in 2023 compared with 285 transactions per capita previously.