Payment Systems in Malaysia: Recent Developments and Issues

Payment systems in Malaysia have been undergoing changes in recent years. Among the notable changes is the emergence of electronic-based payment systems. The central bank has been playing an active role in shaping the development of payment systems, particularly in the gradual introduction of electronic-based payment schemes, in the belief that these have the potential to increase efficiency in the economy as whole. The active introduction of e-payment instruments has increased both the value and volume of transactions per capita use of e-payment instruments in recent years. Checks continue to be the major payment instrument, however. Small- and medium-sized enterprises could benefit tremendously from the use of e-payment schemes through more efficient business operations, cost reductions, enhanced security and wider payment channel choice. [ADBI Working Paper 151]