Kuala Lumpur: Malaysia’s currency in circulation (CIC) experienced a 5.5% increase year-on-year, reaching RM170.7 billion as of December 31, 2024. This marks a reversal from a 0.2% decline in 2023, when the CIC stood at RM161.8 billion.

According to BERNAMA News Agency, Bank Negara Malaysia (BNM) indicated that cash demand will persist despite the increasing adoption of e-payments. This demand is driven by factors such as economic growth, the necessity for cash in emergencies, and as a payment method in areas lacking e-payment facilities.

BNM, in its Annual Report 2024 released today, stated, “Although the payment landscape has changed considerably in recent years with the growth of e-payments, cash remains an important means of payment.” The central bank also highlighted its ongoing efforts to monitor and assess emerging counterfeit threats to maintain the integrity of CIC. As of December 31, last year, Malaysia’s counterfeit index was reported at 1.7 parts per million (ppm), a slight increase from 1.6 ppm in 2023, yet still lower compared to other benchmarked countries.

With Malaysia targeting net-zero emissions by 2050, BNM has implemented sustainable initiatives throughout the currency ecosystem. This includes prioritizing the issuance of fit banknotes, supplemented with new banknotes, especially during festive seasons. In 2024, BNM issued 2.5 billion banknotes nationwide, with fit banknotes comprising 66% of this volume.

As cash remains crucial for the foreseeable future, BNM has strengthened its collaboration with currency industry players to enhance the overall value chain of the currency ecosystem. The initiative takes advantage of nationwide improvements in the currency distribution network and BNM’s experience in managing the COVID-19 pandemic.

Looking ahead, BNM stated it will continue to monitor developments in the currency ecosystem through supervisory and surveillance activities while introducing new sustainable initiatives.