Bank Negara Malaysia’s move to reinstate a RM1 fee for interbank ATM withdrawals will hurt Sabah’s poor and widen existing economic gaps, a consumer group warned today.

David Chan, who heads the state chapter of the National Consumer Foundation, said the policy will disproportionately affect the B40 group, many of whom rely on frequent cash withdrawals for daily living expenses.

“While Bank Negara aims to promote digital transactions, this fee targets those who can least afford it,” he said in Kota Kinabalu, on Thursday.

Chan was responding to reports of the National Union of Bank Employees (NUBE) launching a campaign to abolish the fee, calling it exploitative at a time when Malaysians are already struggling with rising costs.

He pointed out that Sabah remains the poorest state in Malaysia, with eight of the country’s ten poorest districts located in the state.

“With inflation already putting a strain on household budgets, every ringgit matters to lower-income families. Imposing this fee will only add to their financial hardships,” Chan said.

He urged Bank Negara to reconsider the policy and look for alternatives that would not further widen economic inequalities.

“Financial policies must be inclusive and take into account the needs of vulnerable communities, not just the privileged few,” he added.

Chan also called on the government to ensure that policies protect disadvantaged groups and do not exacerbate poverty.

He stressed the importance of collaboration between the government, financial institutions, and consumer groups to address financial challenges faced by Malaysians. – January 11, 2025.