It outperforms Kedah, S’gor, Melaka with 99.4% electronic payment adoption
ALL Penang government departments have adopted cashless payment systems, although cash is still accepted on Fridays to cater to those who prefer the traditional mode.
State local government committee chairman Jason H’ng Mooi Lye said the initiative was introduced several years ago following the Covid-19 movement control order to encourage greater use of electronic payments while reducing the security risks associated with handling large amounts of cash.
Staff at payment counters will assist the public, particularly senior citizens, with cashless transactions, he added.
To further improve the system, H’ng said the state began conducting internal surveys among government departments in March.
It later extended the exercise to businesses and the public to gauge acceptance of cashless payment services and identify areas for improvement.
H’ng said Penang retained its position as the national champion in the Finance Ministry’s “Cashless Boleh 5.0” campaign after recording a 99.4% cashless payment rate in 2025, securing the title for a third consecutive year.
The achievement earned the state RM50,000 in prize money, a trophy and a certificate, outperforming Kedah, Selangor and Melaka in the state government category.
He noted that the 99.4% figure comprised payments made both online and at physical counters.
“The recognition is meaningful for Penang government and reflects our continued commitment to strengthening the state’s digitalisation agenda while expanding the use of cashless payments in public service delivery,” he said at a press conference on Penang’s national cashless campaign award at Komtar.
H’ng said Penang’s cashless payment rate had increased steadily over the past three years, from 94.09% in 2023 to 97.26% in 2024 before reaching 99.4% this year.
The achievement, he added, reflected the state’s long-standing efforts to digitalise public services across its 24 government departments and agencies.
To encourage greater adoption, the state has been promoting cashless payments through official websites and social media platforms with publicity materials displayed at government offices, highlighting the convenience and security of electronic transactions.
H’ng stressed that the 99.4% cashless payment rate was based on actual transaction data collected from government departments.
The award was presented to Penang government during a courtesy visit by a delegation from Finance Ministry and Payments Network Malaysia Sdn Bhd (PayNet) to State Secretary Datuk Seri Zulkifli Long.
Also present were the state secretary’s office local government division secretary Muhamad Husni Mahmud and deputy secretary Nur Humaira Hanani Johari.
