CASHLESS transactions at both Penang’s local councils hit an all time high through guidance in adopting kiosk and app technology.
Penang island mayor Datuk A. Rajendran said Penang Island City Council (MBPP) has embraced 100% cashless payments.
“When the public visit our payment counters we assist them with using the self-service kiosk machines instead,” he said after MBPP won first place and RM30,000 in Category A (above 50,001 cashless transactions) at the annual Penang Public Sector Cashless Transformation Awards 2025.
It recorded a whopping 29.2 million cashless transactions last year.
“The older generation still struggles but we have people on hand to guide them,” said Rajendran.
“Going cashless has resulted in us using less paper as there are no more physical bills and receipts.
“It also saves people time as there are no more long queues.”
Cashless transactions were becoming the norm as MBPP has seen increased adoption, he added.
Seberang Prai mayor Datuk Baderul Amin Abdul Hamid said while the Seberang Prai City Council (MBSP) wanted to go fully cashless as well, many senior citizens were apprehensive about using the machines.
“We are continuously working on it. The city council encourages people to do online transactions but the acceptance rate has only been 99%,” he said after MBSP won second place and a RM25,000 prize in the same category.
“This is solely because the older generation worry over security,” Baderul Amin added.
“There is a fear of machines and they have difficulty with their hand phones so we have counters to cater to the elderly.
“We do accept cash, but we don’t encourage it. We try to convince the public but they still want printed receipts,” he said.
Third place, with a prize of RM20,000, was won by Zakat Pulau Pinang.
Earlier, state local government, town and country planning committee chairman H’ng Mooi Lye said cashless transactions in Penang recorded strong growth, with the adoption rate reaching 97.92% in 2025, placing the state among the highest in digital payments nationwide.
He said this achievement reflected the success of the state government’s digitalisation initiatives, particularly in expanding cashless services across local authorities.
He said these include payments for tax compounds, business licences and other services which could now be carried out through digital platforms.
“This reflects the high level of public confidence and acceptance of digital payment systems.
“It is a significant step towards Penang’s goal of becoming a fully cashless state by 2030,” he said in his speech.
H’ng said the state government remained mindful of the challenges such as cybersecurity risks, online fraud and the need to ensure digital inclusion so that no one is left behind.
“Today we recognise the achievements of 24 departments and agencies that have demonstrated a strong commitment to making Penang’s cashless campaign a success.
“Their efforts have directly contributed to improving the efficiency of government revenue collection, reducing reliance on physical transactions and expediting service delivery to the people.”
