Malaysia ranked 19th among 73 nations for government e-payment adoption
KUALA LUMPUR: Malaysia has been ranked 19 out of 73 countries in a survey that ranks governments by quantifying their e-payment capabilities based on various indicators such as policies and infrastructure.
The survey forms part of the Economist Intelligence Unit (EIU) global index and benchmarking study commissioned by financial services corporation Visa.
It evaluates the extent to which major countries around the world have enabled the adoption of e-payments according to seven criteria transactions between citizen and government (C2G), government-to-citizen (G2C), business-to-government (B2G), government-to-business (G2B), as well as the infrastructure, socio-economic and policy environments to enable e-payments.
In a statement today, Visa said Malaysia’s ranking showed it has fairly well-developed government e-payments capabilities.
“It is one of the top-performing countries when it comes to B2G, C2G and G2C transactions. Malaysia can further enhance e-payment adoption by focusing on G2B transactions, investing in infrastructure, and implementing policies that encourage growth and innovation,” Visa said.
The company noted, however, that Malaysia lags behind its peers in infrastructure development and socio-economic conditions.
“At 28th place in infrastructure, Malaysia is developing stages of enabling widespread access to internet, as well as expanding access through payment acceptance devices. To address this gap, the government has undertaken e-inclusion initiatives, to make free wi-fi available in public spaces. Malaysia also has a fully functional e-ID program with payment capabilities.
“When it comes to socio-economic conditions, Malaysia is in 34th place, primarily on account of moderate internet and banking access.
Additionally, Malaysian citizens and businesses could further increase their intensity of internet usage at present, their engagement with internet-enabled services is relatively low.
On policy, Visa said Malaysia ranked 16th, lagging behind due to various factors.
“For instance, the government has instituted certain policies which restrict market competition, and has a fairly weak protection regime for intellectual property rights. This could hinder innovation and act as a barrier for growth.
“There are also certain restrictions on foreign firms’ ability to access funding from domestic sources which could create another barrier to entry. Finally, while the government offers consumers incentives to use digital payments, it doesn’t provide similar incentives for merchants to accept digital payments, which could slow adoption,” Visa said.