By Ahmad Fadhli Shaari, Member of Parliament for Pasir Mas
The debate surrounding the RM1 interbank ATM withdrawal fee has reignited, and it's a conversation that needs to be had, especially on the burden it places on low-income earners.
I now stand 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.
We will push the government to abolish the fee so as not to let this capitalist system continue to exploit Malaysians.
The call to abolish the fee echoes the sentiments of many Malaysians, particularly those in the B40 and M40 groups, which forms the vast majority of Malaysia’s population.
This seemingly small charge represents a significant burden on those least able to afford it, while simultaneously generating substantial profits for the banking system. It's a system that appears to disproportionately benefit the wealthy at the expense of the struggling masses, and it's time for a change.
The numbers speak for themselves. Payments Network Malaysia Sdn Bhd (PayNet) — the national payments network and shared central infrastructure for Malaysia's financial markets and the very entity imposing this fee — raked in a staggering RM544 million in revenue and a net profit of RM271 million in 2023 alone, derived almost entirely from this RM1 charge.
Since its inception, this fee has contributed to an accumulated profit of RM1.43 billion. While PayNet boasts processing trillions of Ringgit in transactions, the fact remains that these profits are built on the backs of everyday Malaysians, especially those in the B40 and M40 income groups.
The argument that the RM1 fee is negligible is simply disingenuous. While it may seem like a small sum, it's the cumulative effect that creates a real hardship.
For those living paycheck to paycheck, every Ringgit counts. These small fees add up, eroding already tight budgets and exacerbating financial strain.
Imagine the single mother withdrawing cash for groceries, or the elderly pensioner relying on limited savings – for them, this RM1 charge is not just a transaction fee, it's a tangible reduction in their already meager resources.
The situation becomes even more troubling when considering the ownership structure of PayNet. With Bank Negara Malaysia (BNM) as the largest shareholder, alongside major commercial banks, the lines between public service and private profit become blurred.
Questions have been raised in the media by many on should an essential financial service, one that directly impacts the most vulnerable members of society, be a source of such substantial profit?
The government's previous decision to waive the fee in 2020 demonstrates an understanding of the financial pressures faced by Malaysians. The subsequent reinstatement of the fee in 2022 feels like a step backward, a move that prioritises profit over the well-being of the people.
#HapusCajRM1
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