KUCHING: A business establishment located in a popular shopping mall in Kuching has recently put up signage stating that it does not accept RM20 notes.
When asked about the reason behind this decision, the cashier on duty, who wished to remain anonymous, explained that it was a precautionary measure taken to prevent the circulation of counterfeit currency.
The cashier said, “Not that we’ve received a fake note, but it is better to be safe than sorry. Although it’s not a significant amount, it’s still money.
“The management decided to put up the signs to deter individuals from attempting to use counterfeit notes at our establishment despite the fact that we have a fake money detection machine here,” she said.
The cashier further explained that the management acted after learning about a police report lodged by a group of traders in Sibu who had received fake RM20 notes on Jan 30.
“It was a serious matter,” she remarked.
“When people with fake money come and buy from these traders, it is a direct income loss because they give fake notes and get back legitimate ones.
“This problem is prevalent among all traders, and usually involves the RM100 and RM50 notes. However, in this particular recent incident, it was with the RM20 notes.
“Besides not having a device to detect fake money, the traders are usually also busy with running their business.
“My mother is also a trader in Kota Sentosa. They have no time to check the notes, especially if they are operating in the market or, say, a stall.” said the cashier, highlighting the challenges faced by small traders in detecting fake currency.
The business owner Lee expressed his frustration with the situation.
“It’s really disappointing that we have to resort to such measures. It’s an extra hassle for us and for our customers, but we feel like we have no other choice.”
A regular customer said paying for her meal at the shop was not a major issue for her as she could opt for other payment methods such as Sarawak Pay.
Director of the economic studies programme at Jeffrey Cheah Institute of Sunway University, Dr Yeah Kim Leng said the issue of fake currency, if not nipped in the bud, could undermine the country’s monetary and financial system.
“If the fake currency circulation grows unchecked, there will be a loss of trust in the currency, affecting cash transactions.
“Improved security features would be a key strategy to combat fake notes.
“Equally important is effective policing to track and shut down the syndicates that engage in such illegal activities which can be treated as economic sabotage,” he said.
Meanwhile, according to Bank Negara Malaysia, Malaysia’s current counterfeiting rate is at less than one part per million (ppm) of banknotes in circulation.
The central bank said it was among the lowest compared with the 12ppm in Europe, 10ppm in Australia and 8ppm in the Philippines.
The country’s rate in 2021 was at 0.3ppm, and 0.8ppm in 2020 and 1ppm in 2019.
“Despite the low rate in Malaysia, Bank Negara takes very seriously every single case of counterfeit currency reported by the public.
“This is to ensure high integrity and continued public confidence in our currency,” Bank Negara Malaysia told New Sarawak Tribune yesterday.
Bank Negara said the country’s banknotes of all denominations had numerous security features on both sides.
The more sophisticated features require sensors that are fitted on cash-processing machines, typically used by financial institutions and registered currency processors.
Cash-processing machines used by Bank Negara at its Automated Cash Centre and five regional offices in Penang, Johor Baru, Kuala Terengganu, Kuching and Kota Kinabalu are fully capable of detecting and authenticating all security features on banknotes, ranging from the simplest to the most sophisticated.
“There are adequate security features in our currency to ensure any counterfeit banknotes will be detected and removed by financial institutions, registered currency processors and Bank Negara that undertake to process millions of pieces every day.
“The processing activities by both financial institutions and registered currency processors, which account for 70% of nationwide currency processing, are regulated and supervised by Bank Negara, in accordance with the powers under the Currency Act 2020.
“The Act allows Bank Negara to set the standards for financial institutions and registered currency processors to comply with, which is necessary in ensuring high quality and integrity of currency in circulation nationwide.
“It is highly improbable that counterfeit banknotes will pass through any processing machine, given the high standards set for currency processing and the multiple levels of security features of various sophistication embedded in the banknotes,” the central bank added.
Despite this, it is reported occasionally that some members of the public come in possession of fake currency.
As such, Bank Negara said every single case of counterfeit currency reported to the authorities would be investigated, both by the police and Bank Negara itself.
“Bank Negara will carry out examinations to determine the nature of the counterfeit and its sophistication.
“Based on data over many years, most of these fake currencies are simple counterfeits, printed using colour printers on ordinary paper and without any security features embedded,” it said.
This type of counterfeit is easily detected by any cash-processing machines used by financial institutions, registered currency processors and Bank Negara, and will be removed from circulation.
“The public too can easily detect these types of counterfeit banknotes without even using any device at all.
“All that is needed is some basic knowledge, in particular visible security features.
“Enhancing our currency with more security features will not totally eliminate counterfeit currency in circulation,” it said, adding that this could be significantly curbed if the public had basic awareness to enable them to immediately identify any fake currency on contact.
“This is the best defence against counterfeit currency.
“Bank Negara has been conducting currency education through various programmes to increase public awareness as part of an ongoing effort to curb currency counterfeiting,” the central bank added.
