fbpx
Connect with us
TOPICS

News

Tun M Considers Replacing Bank Notes or Going Cashless to Combat Corruption

Published

- World Of Buzz
Source: Borneo Post

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

After the historic GE14 win, our new government (Pakatan Harapan) has promised to combat corruption as clearly, it has tainted the sanctity of this country.

Staying true to their promise, Tun Dr Mahathir said that the government may change our bank notes or opt for cashless transactions in efforts to eradicate corruption.

Based on a recent statement yesterday (26 June 2018), Tun M shared that these are ideas to curb corruption and “address counterfeit notes” that have circulated all over the country, reported NST.

Tun M Policy Talks

Source: roketkini

Reports reveal that these efforts may be inspired by Modi’s move to ban India’s INR 500 and INR 1,000 (RM29.40 and RM58.82) notes overnight to combat the rapid growth of “untaxed cash transactions”. This was a smart move as Modi managed to disrupt the black market because they weren’t able to transfer their money openly and were no longer accepted as “legal tender”.

FYI, “untaxed cash transactions” contribute to corruption, funding of terrorist groups and wide distribution of imitation currencies. Yikes, no wonder he banned the notes! 

Besides the change of bank notes, Tun M is also considering to battle corruption by possibly enforcing cashless transactions only. 

Cashless Transactions

Source: zemsib

“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 said.

He pinned down these possible ways because Tun M believes that the change of currencies could fight one of the “biggest legacies of the old administration”. Do you agree with him?  

Tun M explained,

“(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.”

Meanwhile, Ambank group chief economist and head of research Dr Anthony Dass thinks that Tun M’s ideas could be a “costly exercise” because it involves complex processes.

Maxresdefault 1 1

Source: youtube

“New ones must be printed, though these would likely be based on the old notes.”

“They will need special papers, millions of metres of security thread, watermarks, ultra-violet features and other anti-counterfeiting devices,” he explained.

Dass also noted that the change of currency could leave a negative impression on stakeholders as they could lose their trust and confidence in our government.

“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,” he said before suggesting that the government adopt a parallel currency.

656253194

Source: istock

FYI, parallel currency is currency issued as a secondary currency by the government alongside the official medium of payment recognised by the law.

Dass had suggested to run it along with the old currencies to pay taxes, food and clothing. Therefore, this will allow the new currency to pay the debts, which will lead to our economic growth.

On the other hand, interestingly, Sunway University Business School economics professor Dr Yeah Kim Leng said that Tun M could have meant that the government will be replacing expensive foreign currency debts – such as 1MDB that’s denominated in dollar – with cheaper loans or debt securities issued in different currencies, like the Yen from Japan.

Tppayeahb3

Source: the star

He was quoted as saying,

“By lowering the debt-servicing burden, it will strengthen the country’s fiscal position. Reducing exposure to a particular currency would also help to diversify currency risks, especially if the foreign currency had a strong likelihood of appreciation, making the loans more expensive to service in the future.”

“A reduction in fiscal risk and an improvement in debt management will raise investor confidence, thereby shielding the currency from undue depreciation pressures.”

“Lower debt servicing also means that the government can allocate more resources to spending, that in turn will boost the country’s growth, thereby lending support to the currency value.”

Hence, to ensure that corruption is removed by the root, our government may decide to go cashless or change the currency notes. Whichever they choose, we hope it would benefit the country immensely!

Would you rather go cashless or have new currency notes? Let us know in the comments below! 

 

Also read: PH’s Win Good for Malaysia’s Economic Outlook, Predicts London-Based Financial Times

London-Based Financial Times Predicted Ph's Win Good For Country's Economy - World Of Buzz 2


Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

My Post 1 2022 11 30T173444.698 My Post 1 2022 11 30T173444.698
News11 hours ago

62yo Melaka Man Faces Multiple Charges After Shooting Neighbour’s Cat To Death With Air Rifle

An elderly man in Ayer Keroh, Melaka, is facing charges in court after he shot his neighbour’s cat to death...

Collage 56 Collage 56
News12 hours ago

Actor Who Portrays PM10 in an Upcoming Movie Escapes Prison Sentence, Fined RM5K for Drug Use

If you keep tabs on the local entertainment industry, you might be aware that there’s a biopic about PM10, Dato...

Collage 8 2 Collage 8 2
News13 hours ago

Local Radio DJ Nearly Gets Shot at Her House After Bullets Go Through Front Door, PDRM Investigates

Being at home with doors closed, unfortunately, may not mean you’re completely safe anymore.  Early this morning (November 30), a...

Ft Motor Ft Motor
News13 hours ago

Kelantan Police Announce That Number of Cases of ‘Mat Rempits’ in the State Have Increased by 49%

One of the major issues that Malaysian road users have to face is the existence of ‘mat rempits’ on our...

Ft Monks Ft Monks
News18 hours ago

Buddhist Temple in Bangkok Left Monk-less After All of Them Tested Positive For Meth

Based on a report by AFP, a Buddhist temple in central Thailand was left without monks after all its holy...

My Post 1 2022 11 30T105454.733 My Post 1 2022 11 30T105454.733
News18 hours ago

Sany Hamzan Makes Police Reports Against Social Media Users Who Use Race & Religion as Political Weapon

A few days back, a Selangor state assemblyman, Mohd Sany Hamzan called for the Malaysian Islamic Party (PAS) to be...

Anwar Loafer Ft Anwar Loafer Ft
News19 hours ago

PM Anwar Ibrahim Responds To Tweet About His RM5,500 Loafers, Says It’s a Gift from Johor Sultan

Just over the weekend, Malaysia has celebrated the fact that a new prime minister was appointed after being in a...

Ft Lrt 1 Ft Lrt 1
News1 day ago

Another Day, Another Disruption to RapidKL’s Kelana Jaya Line LRT Service

Less than a month since the major disruptions to RapidKL’s LRT service, it appears that there has been no change....

Announcement

Latest Videos



TRENDING TODAY