GOVT MAY REPLACE BANK NOTES
It is also mulling going cashless to fight graft, says PM
MALAYSIA could have its currency notes replaced as Putrajaya looks to combat corruption. Economic analysts, taking cue from Prime Minister Tun Dr Mahathir Mohamad’s statement yesterday, said he saw the plan as an effective measure to tackle corruption and address counterfeit notes.
They are also drawing parallels with the 2016 overnight move by India, which banned its 500 and 1,000 rupee notes, overnight.
The currency ban is part of efforts to close down the booming economy of untaxed cash transactions in India, which allows corruption, funding of terrorist groups and keeps counterfeit notes in circulation.
The move hit black marketeers and those who use black money hard as they were not able to move the notes openly as they were no longer accepted as legal tender.
Dr Mahathir told Channel NewsAsia in an interview that another option was for the country to embrace cashless transactions.
“We are studying how best to reduce corruption and how best to keep track of money that is being spent, especially by the government.”
He described corruption as one of the “biggest legacies of the old administration” and changing currencies could be a way to address the issue.
“(But) it’s not an easy thing because when you want to replace currency, you must know how much currency is in circulation… because we have to replace what is in circulation and that is a very big amount,” he said.
AmBank group chief economist and head of research Dr Anthony Dass viewed Dr Mahathir’s plan differently, saying: “Sometimes, because people have too much money in hand, the government issues new notes to address this and distributes them slowly to prevent overspending.”
This, he said, could be a costly exercise, involving complex procedures.
“New ones must be printed, though these would likely be based on the old notes,” he told the New Straits Times yesterday.
“They will need special papers, millions of metres of security thread, watermarks, ultra-violet features and other anti-counterfeiting devices.”
Dass also cautioned that changing currency notes could send a negative message and the government could lose trust and confidence of stakeholders.
“Although countries can, and sometimes, do change the shape and size of their currency notes, and even denominations, often, the old notes are allowed to remain in circulation.”
Dass said there were other options.
“We can have a parallel currency, where the currency would be circulated alongside the old currency to pay for taxes, food and clothing, freeing up the new currency to pay for debt and create growth.
“Other than that, the country could go for digital currency, which is much easier to design and distribute,” he said.
Sunway University Business School economics professor Dr Yeah Kim Leng said Dr Mahathir
KUALA LUMPUR: The National Higher Education Fund Corporation (PTPTN) has confirmed that 429,945 loan defaulters have been removed from the Immigration Department travel blacklist and are now able to travel abroad.
Newly-appointed PTPTN chairman Wan Saiful Wan Jan said the exercise to remove the defaulters from the department’s blacklist was implemented in stages from May 24 and was completed by June 8, a week earlier than scheduled.
“This fulfils the government’s 100 day manifesto pledge to reduce the burdens faced by young Malaysians,” he said at a press conference here yesterday.
With the completion of this exercise, a total 1.8 million PTPTN borrowers can now travel abroad, apply and renew their passports without any restriction from the Immigration Department.
Up to May 31, more than one million PTPTN defaulters were blacklisted by the Immigration Department under the PTPTN Act 1997. Of this, 684,233 defaulters repaid their loans, amounting to RM2 billion.
“Although the Immigration Department blacklist has been lifted, PTPTN borrowers are advised to repay their loans and refrain from delaying or defaulting on their payments so that future generations can benefit from the funds,” said Wan Saiful.
“Borrowers are encouraged to make consistent payments to avoid a bad credit record in the Central Credit Reference Information System (CCRIS),” he added.
Wan Saiful said for borrowers who repaid their loans consistently, a good credit record would assist them in applying for housing, personal and car loans.
With the removal of the blacklist, the PTPTN counter at klia2 will be closed beginning July 1.
On the pledge by the government to defer the repayment of loans by those earning RM4,000 and below, PTPTN remains committed to fulfilling the promise, but needed more time to study the matter.
He said PTPTN and the Education Ministry, working together with other agencies such as the Public Services Department, Employees Provident Fund, the Retirement Fund Inc (KWAP) and the Armed Forces Fund Board (LTAT) to identify information relating to the income of borrowers.
He urged borrowers to be patient and to continue with their payments until further notice.
PTPTN has made it easier for borrowers to repay their loans via the #BolehBincang campaign, which allows borrowers to discuss and negotiate a payment schedule. They can also make cashless payments, either through salary deduction, direct debit, Internet banking or via debit card at PTPTN counters.
On a rumour that the parents of PTPTN loan applicants must be BR1M recipients, Wan Saiful said this was not true. He said the loan was open to all Malaysians who wish to further their studies in public or private institutions of higher learning in the country.
The press conference also announced the appointment of Wan Saiful as the new PTPTN chairman, replacing Datuk Dr Shamsul Anuar Nasarah, effective June 18.
Wan Saiful is the special adviser to Education Minister Dr Maszlee Malik, and was the founding chief executive officer of the Institute for Democracy and Economic Affairs (Ideas).