Kuala lumpur: Digital banks are urging the government to prioritise the distribution of targeted subsidies and cash aid in Budget 2026 through digital banking platforms, highlighting their potential to deliver a more equitable and efficient system. The first operational digital bank, GX Bank Bhd, said digital banks are also seen as crucial partners in national development, enhancing the secure and efficient distribution of government aid to ensure subsidies reach Malaysians directly and effectively in managing cost-of-living pressures.
According to BERNAMA News Agency, GXBank proposed that a single, unified digital platform should be established to manage all national subsidies and cash assistance programmes. Currently, the government’s aid initiatives, such as targeted subsidies and cash handouts, are channelled through various platforms, including e-wallet and MyKad.
Malaysia’s Islamic digital bank, KAF Digital Bank Bhd’s chief executive officer, Rafiza Ghazali, has called for stronger collaboration between digital banks, the government, and industry players, emphasising that digital banks should not work in isolation and that stronger partnerships will be essential moving forward.
Ryt Bank, a next-generation artificial intelligence (AI)-powered digital bank, believes a single distribution platform via a digital bank, enabled by electronic know-your-customer processes, would be able to reduce fiscal leakages, ensuring fairer distribution of aid and promoting greater financial inclusion. The bank also hopes that Budget 2026 will introduce tiered subsidies for entrepreneurs to acquire digital devices, linked to digital bank onboarding and digital platform adoption.
GXBank has also called for a government-backed guarantee scheme for microloans to enable financial institutions to unlock critical capital for micro, small, and medium enterprises (MSMEs). It stated that such a scheme could create a powerful multiplier effect on national growth while providing a safer alternative to unlicensed money lenders. GXBank also noted that Budget 2026 could address technology and literacy as part of the national infrastructure to upgrade national AI and data analytics capabilities for more inclusive credit scoring and stronger fraud protection.
Meanwhile, Boost group chief executive officer Sheyantha Abeykoon said that with supportive policies, digital banks can help address persistent financial gaps by delivering data-driven solutions that meet real needs, from everyday payments to business financing as efficiently, responsibly, and at scale. He mentioned that incentives such as grants, public-private partnerships, and investments in emerging capabilities such as data analytics and AI will help digital banks scale responsibly while building a future-ready financial ecosystem.
As of October 2025, all five digital banks – GXBank, Aeon Bank Bhd, Boost Bank Bhd, Ryt Bank, and KAF Digital Bank Bhd – have commenced operations. Budget 2026 will be tabled by Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, in Parliament on Oct 10.