MCA Youth supports the call to abolish the RM1 fee for inter-bank automated teller machines (ATMs) cash withdrawals, as this charge heaves financial pressure upon users who currently struggle with rising costs of living.

Earlier, MCA President, Datuk Seri Ir. Dr. Wee Ka Siong had also expressed a similar position against the transaction fee for the DuitNow QR app which commenced effective 1 November, as that too impacts users, especially petty traders.

The RM1 fee imposed on depositors using ATM machines may not seem significant to some, but with frequent usage, the accumulated fees do add up. The effect will be more pronounced for individuals making high-volume transactions daily or monthly.

MCA Youth also believes that this RM1 fee will impinge a greater impact on low-income users or individuals without substantial savings. These groups are more sensitive to additional charges, as it directly affects their cash flow.

It is also common knowledge that not all ATM machines belonging to the depositor's own bank are available in their area. This situation compels users to use another bank's ATM to withdraw money. From a positive standpoint, this fee will encourage users to be more economical—only using other banks' ATMs when absolutely necessary. However, in urgent situations, they may still have to use these ATMs and incur the RM1 charge.

In the long term, this RM1 fee will become an additional source of income for the banks, stabilising and increasing their revenue. But will users also benefit from this?

Questions will continue to arise over the implementation of this fee, more so if the services dispensed from the banks are dissatisfactory. Banks need to ensure that users receive value equivalent to the charges imposed so that they are satisfied with the services rendered.

Neow Choo Seong
MCA Youth Information Chief

10 December 2024

-MCA Comm-