The Member of Parliament for Pasir Mas Ahmad Fadhli Shaari now stands behind the call to abolish the RM1 ATM interbank withdrawal fee, citing there is no longer any necessity to impose this fee on Malaysians.
“Imagine, the fee of RM1 is being charged on every interbank Automated Teller Machine (ATM) withdrawal… how much profit is then accumulated by the banking system in one day resulting from such a capitalist system.”
Ahmad, who is also Pan-Malaysian Islamic Party (PAS) Information Chief said: “We will push the government to abolish it (the fee)! I support the demand to abolish the RM1 ATM withdrawal fee. There is no reason to continue imposing this charge... Don't let this capitalist system continue to exploit us.”
Speaking to officers from the National Union of Bank Employees (NUBE) recently, Ahmad now joins a cause to call on the government to abolish the fee launched by the union.
NUBE General Secretary J. Solomon, has since December, last year, raised concerns about the ongoing issue of the RM1.00 transaction fee imposed on out-of-network ATM withdrawals, which continues to place a burden on medium and low-income Malaysians.
Solomon highlighted that this fee is a significant challenge, particularly as many Malaysians are grappling with rising living costs.
PayNet, the entity responsible for imposing this fee, is Malaysia's national payments network. It is owned by Bank Negara Malaysia (BNM) as its largest shareholder, alongside 11 major commercial banks. As of October 2024, BNM holds 35.5% of PayNet's shares, while each of the commercial banks owns 5.86%.
PayNet reported a revenue of RM544 million and a net profit of RM271 million for 2023 from the RM1 fee, contributing to a total accumulated profit of RM1.43 billion since its inception. Despite these profits, Solomon criticised the exploitation of the working class, pointing out that PayNet’s earnings are derived from the struggles of low-income Malaysians.
Although PayNet processed a staggering RM5.15 trillion in transactions in 2023, Solomon argued that the fee disproportionately affects the B40 and M40 income groups, further exacerbating financial difficulties for the poor.
In 2020, the Malaysian government waived the RM1 fee to ease public access to cash, but this exemption was removed in February 2022, resulting in the reinstatement of the fee.
NUBE has called on the government to instruct Bank Negara Malaysia (BNM) and the banks to abolish the RM1 fee, as it imposes an unfair financial burden on millions of Malaysians who are already struggling with the high cost of living.
Solomon pointed out that while the fee may seem small, it accumulates over time, enriching the wealthy while further impoverishing the poor, which is particularly challenging in the current economic climate.
To make a difference today, Malaysians are urged to go to NUBE’s official website here, and the Change.Org site at the campaign page, or sign on the forms when approached by the officials and volunteers who are assisting in the campaign to add to the call to abolish the fee.
#HapusCajRM1
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