Cashless system can improve the country's Corruption Index - Expert

KUALA LUMPUR: The comprehensive implementation of a cashless system through the Malaysia Digital initiative can improve the country's Corruption Perceptions Index, says Universiti Putra Malaysia (UPM) School of Business and Economics Assoc Prof Dr Anuar Shah Bali Mahomed.

He said this was because most parties currently gave or received bribes in cash.

"When there is no cash then there is no physical money and every (digital) transaction is recorded, so of course, the corruption rate will be significantly reduced by expanding this technology (cashless system) to all parties," he said while appearing as a guest on the Ruang Bicara programme aired on Bernama TV.

Malaysia Micro-Entrepreneurs Academy (AUM) chief executive officer Abd Azharee Abdul Wahid was also present.

Anuar Shah said a cashless system would also benefit the people, both customers and traders alike, as they could monitor the price control and compare prices using the records in the e-wallet.

He also suggested that the government should continue the cash assistance of RM100 a month for three months, such as through the PRIHATIN Kasih Programme via e-wallet or through an e-cash identity card, provided only to buy daily necessities.

"Because the value of RM100 in cash and the e-wallet is different. When we use the e-wallet, there are 'rewards' involved, and eventually, it is credited back as a useable amount," he said.

Meanwhile, Abd Azharee said entrepreneurs need to be brave and open their minds to adapting to technology, especially the digital economy, in terms of marketing their businesses so as not to be left behind.

"No matter how small the use of e-wallets is (in their business at present), what is important is the readiness of entrepreneurs to adapt (to the digital economy), otherwise we may be left behind compared to other countries," he said.

-- BERNAMA