GEORGE TOWN – Much of the business community in Penang is up in arms over the plan by Bank Negara Malaysia to cap cash transactions at RM25,000 to combat financial crimes.
Federation of Malaysian Manufacturers (FMM) Penang chairman Datuk Ooi Eng Hock said the plan has its pros and cons.
He said it might be a measure to combat certain financial crimes but it will result in difficulties for businesses. The limit of RM25,000 is too low, he stressed.
He added that Bank Negara should look into measures to curb online financial crimes instead, and provide a high level of confidence to encourage businesses to do online transfers.
Construction and automotive businessman Raja Rizal Kamrul Abdullah was also not in favour.
He said in certain industries, like construction, cash transactions are important when an employer wants to pay its employees or to buy materials.
He added that businessmen do not withdraw cash “as they like” and if they have to perform a large cash transaction, they would have their reasons for doing so.
“Maybe it can stop loan sharks, but for me, it brings more harm than good, ” said the former Penang Malay Chamber of Commerce member.
Datuk Seri Abdul Rafique Abdul Karim said the move would limit the scope of doing business for businessmen like him as the amount was too small for transactions.
“If Bank Negara decides to go ahead with the plan, it will cause delays in our business transactions.
“I think they should increase it, RM25,000 is too little, ” he said.