This article first appeared in The Edge Financial Daily on December 20, 2019

KUALA LUMPUR: Khazanah Nasional Bhd will announce the participating e-wallet service providers in the e-Tunai Rakyat initiative unveiled at the tabling of Budget 2020, said Finance Minister Lim Guan Eng in a statement yesterday.

The scheme, which will be rolled out from Jan 1 to Feb 29 next year, will entail giving out RM30 to each Malaysian aged at least 18 years earning below RM100,000 per annum, which can be used to pay for goods and services through these selected providers.

“In addition, the e-wallet service providers also plan to provide additional incentives to further encourage users over the two-month period of the initiative,” he added.

Guan Eng said the implementation of the scheme, which involves a RM450 million government allocation, aims to accelerate the use and adoption of e-wallets and digital payments among Malaysian consumers and merchants, especially small enterprises and retail businesses.

“The MoF (ministry of finance) has appointed Khazanah to facilitate and coordinate the rollout of the e-Tunai Rakyat initiative, which involve a close collaboration with various parties including the National Registration Department, and the Inland Revenue Board,” he said.

Guan Eng said the implementation covers multiple areas such as establishing the necessary mechanisms, processes and procedures for the initiative.

“More information on how eligible Malaysians can apply for the RM30 and the terms and conditions of its use will be provided by Khazanah and the participating e-wallet service providers soon,” he said.

Guan Eng said the e-Tunai Rakyat programme is in line with the government’s shared prosperity agenda which aims to lower barriers to access digital technology and to make the digitalisation process inclusive for all.

“We are confident that the e-Tunai Rakyat initiative will greatly benefit Malaysian consumers and merchants, and achieve its intended objectives of further transforming Malaysia towards becoming a vibrant digital society and economy.