PETALING JAYA: The imposition of a fee on every interbank ATM withdrawal disproportionately affects individuals who rely on these machines daily due to inadequate banking infrastructure or emergency needs.
In a statement, today, Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said even as the country transitions towards cashless and digital payments, it is essential for banks to prioritise financial inclusivity for individuals and micro-enterprises
He said this is particularly important in rural areas where access to digital payment options may be limited or where users may be less technologically inclined.
Withdrawals from ATMs, especially MEPS ATMs, he opined enhances accessibility in locations where a customer’s own bank ATM may not be available.
“It is further understood from the Budget 2025 announcement that the Government intends to extend the coverage of service tax to fee-based financial services, potentially including the charges for ATM withdrawals,“ he said.
He suggested that rather than charging for every transaction, banks should either remove these fees entirely or provide a set number of free interbank ATM withdrawals per month to ease the financial burdens on those who have no alternative but to use interbank ATMs.
Engagement with all relevant stakeholders, Soh emphasised, is critical when proposing additional charges which would impact society at large, the cost of doing business and cost of living.
He pointed out allowing free interbank withdrawals up to a certain limit would also facilitate a smoother transition to digital payments without penalising those who still depend on cash.
“This approach would align Malaysia with international best practices, enhance customer trust, and reduce unnecessary financial strains on lower-income groups.
“We do not believe that removing interbank ATM withdrawal fees would hinder the transition towards a more digitised economy.
“The shift towards digital payments is driven by factors such as improved convenience, enhanced security, and the increasing adoption of online banking, mobile wallets, and contactless payment solutions. These should not be forced through punitive charges on cash withdrawals,” he said.
Soh said ultimately, banks should adopt a more equitable policy that balances cost recovery while ensuring financial services remain accessible to all.
The National Union of Bank Employees (NUBE) officially launched a signature campaign last year aimed at abolishing the RM1 interbank ATM cash withdrawal fee.
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The campaign seeks to gather a million signatures to present to the Finance Ministry, highlighting the impact of this fee on the lower-income population.
NUBE general secretary J Solomon, said RM1 may not appear big to many, but it adds up to a huge amount over time and this is a burden to the lower-income group.
He pointed out that the majority of those affected by the RM1 fee are from lower-income groups.
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