Sixty per cent of the Malaysian government’s total collection was paid electronically by the end of 2020. Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz used that figure on June 8 to back a bigger promise: every payment for a government service will be cashless by 2022.
Zafrul was speaking at the Malaysian Institute of Accountants (MIA) Conference 2021. He tied the target to MyDigital, the national digital economy blueprint, which maps how the country moves toward a more digitally connected economy on the Industrial Revolution 4.0 path. He said cashless payment will bring higher transactional security, better coordination, stronger communication on anti-corruption initiatives and easier sharing of information.
Less contact, less leakage
The government has pushed digitalisation on several fronts, Zafrul said, including modernising public service delivery and curbing corruption. Fewer face-to-face contact points between citizens and officials means fewer chances for it. He said the government has worked to improve governance and to stop leakages and fraud.
Citizens are now identified through electronic ID cards and biometric proof of identity, and that speeds up direct government assistance. Most direct aid so far has already gone out without cash. Applications and payments for Bantuan Prihatin Rakyat and Geran Khas Prihatin were handled electronically and online.
What he asked of accountants
Zafrul called accountants an important influence on informed decisions and said they have a part in driving digitalisation. He noted that MIA has encouraged digital leadership and transformation through its MIA Digital Technology blueprint.
He also welcomed the institute’s push on tax governance, which targets non-compliance and systemic inefficiencies. “By broadening the tax base — including taxation of the shadow economy, improve tax compliance and administration matters — this will enhance tax collection which is critical to enable the government to deliver more assistance during times of crisis, as well as for the nation’s developmental expenditures and longer-term reform agendas,” he said.
MIA has also argued that sustainable development goal reporting belongs in corporate reporting. Zafrul said accountants are well placed to put a cost on climate impacts such as carbon and greenhouse gas emissions, to give independent assurance on sustainability processes, and to report on them for decision-makers.
The three-day conference ran under the theme “Navigating a Sustainable Future with Agility and Resilience”. It aimed to give accountants skills for the sustainability agenda, with sessions on business continuity, climate solutions and digital empowerment.
Sources
- All payments for govt services to be made on cashless basis by 2022 – Tengku Zafrul
- Zafrul: All payments for Govt services to be made on cashless basis by 2022
- All payments for govt services to be made on cashless basis by 2022 | Malaysiakini
Sources
- All payments for govt services to be made on cashless basis …
- Zafrul: All payments for Govt services to be made on cashless …
