Financial Services

EPP 4: Creating an Integrated Payment Ecosystem

  • GNI by 2020 (mil)
  • Projected jobs by 2020

This EPP seeks to reduce dependence on cash transactions to 63% of total transactions by 2020, while targeting to increase e-payments to 200 per capita per year and 25 point-of-sale (POS) terminals per 1,000 inhabitants by 2020.

Initiatives under this EPP, developed by the central bank, Bank Negara Malaysia, in collaboration with relevant agencies and merchant acquirers include sourcing cheaper POS terminals, providing a competitive discount rate through tiered pricing and attracting consumer demand for cashless payments through loyalty programmes.

The Ministry of Finance will also gradually increase the stamp duty on cheques and eliminate the use of cheques in Government-related payments. Initiatives will also be undertaken to further integrate and promote cross-border financial intermediation in the retail market. Bank Negara Malaysia (BNM), the central bank, through this EPP aims to drive the adoption of electronic payment systems by consumers, businesses and the Government, expand merchant acceptance of cashless payments and reduce the use of cheques.


  • In 2014, BNM embarked on an e-payment strategy by leveraging on the Interbank GIRO (IBG) to replace the usage of cash.
Economic Transformation Programme
The ETP Transformation Story
The Economic Transformation Programme (ETP) is a comprehensive effort that will transform Malaysia into a high-income nation by 2020.
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