{"id":18449,"date":"2022-02-20T19:00:00","date_gmt":"2022-02-20T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/ways-malaysians-manage-money-pre-merdeka-vs-2021.html"},"modified":"2026-03-26T16:00:19","modified_gmt":"2026-03-26T08:00:19","slug":"ways-malaysians-manage-money-pre-merdeka-vs-2021","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/lifestyle-finance\/ways-malaysians-manage-money-pre-merdeka-vs-2021.html","title":{"rendered":"Pre-Merdeka vs 2022: How Malaysians Managed Their Money Then vs Now"},"content":{"rendered":"\n

Financial management was different before Malaysia gained independence in 1957. How did the financial landscape transform and affect us today in 2020? We look at 8 ways of how Malaysians managed their money during pre-Merdeka days and now.<\/strong><\/p> \n

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Rewind to more than six decades ago, pre-Merdeka times, and money management and personal finance were starkly different to what many Malaysians are so accustomed to today.<\/p> \n

Back then, even the most basic of financial transactions required a lot of labour – with people going beyond their means for what can be done with little effort today thanks to automation and technology.<\/p> \n

With National Day and with Malaysia Day looming ahead, we decided to take a look back at how money management and personal finance have evolved through the years, especially with the rise of the internet and the proliferation of fintech, all of which have profoundly changed how we manage our finances.<\/p> \n

1. Opening a bank account has never been easier<\/h2> \n

The history of banking in Malaysia began as early as the 19th century when British colonialism emerged along the Straits Settlement surrounding Penang, Malacca and Singapore in 1867.<\/p> \n

Due to all the merchant activities being carried out at strategic locations and in port facilities, the government decided to establish financial institutions to aid these activities.<\/p> \n

These institutions would later become the first few banks in Malaysia such as Chartered Bank and Hong Kong Bank, both located in Beach Street, Penang.<\/p> \n

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The HSBC Building at Downing Street, George Town (right) was built in 1948, replacing the original HSBC Building that was destroyed during the Second World War. (Image source: Penang Fandom)<\/em><\/p> \n

Fast forward to today and gone are the days where we would need to endure long, packed lines just to open a basic savings account.<\/p> \n

Today, applicants can create their bank accounts online in under just a few minutes for most banks in Malaysia.<\/p> \n

Most banks just require your identification, a copy for your bill to verify your address and a minimal initial deposit to activate an account.<\/p> \n

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Most banks in Malaysia offer services online.<\/em><\/p> \n

On top of that, the impending introduction of digital banks in Malaysia means we may no longer need to physically be at banks to enjoy all its services, an idea that was almost impossible six decades ago.<\/p> \n

Often misunderstood for online or mobile banking, digital banks are more sophisticated because they leverage technology in every banking activity, process and stage, in turn, eliminating the need to be at a physical location.<\/p> \n

Bank Negara Malaysia (BNM) announced this year that it is set to issue up to five licenses to successful applicants to establish digital banks that conduct either a conventional or Islamic banking business.<\/p> \n

What makes digital banks unique from traditional banks is that they operate via straight through processing \u2013 an automated electronic payment process used to speed up financial transactions from initiation to final settlement.<\/p> \n

Digital banks also aim to promote financial inclusion by reaching out to the remaining unserved and unbanked population in the country \u2013 a large part of which comprise foreign workers and their families some of whom are undocumented workers, according to the World Bank report. Research reports say that about 8% of the country\u2019s population still remains unbanked.<\/p> \n

Related:<\/strong> Digital Banks Are On the Rise In Malaysia \u2013 What Does This Mean for You? Experts Weigh In<\/a><\/p> \n

2. Managing finances digitally – just a swipe away<\/h2> \n

\"\"The advent of cloud technology has allowed bookkeeping data and information to be stored online.<\/em><\/p> \n

Remember how using a physical ledger to track and record expenses and deposits to your bank accounts was a common practice?<\/p> \n

Technology has eased this process – today, most transactions can be recorded online or via a mobile application. Cloud technology has also made saving data and records easier, and makes retrieving such documents easier.<\/p> \n

From expenses to commitments to income, each transaction can all be parked in an integrated mobile application.<\/p> \n

Some popular apps to consider include MyTabung<\/a> by Bank Negara Malaysia. Developed by Bank Negara Malaysia, it allows users to create a personal\/household budget, record and monitor income, savings and expenses. The app also comes with financial advice and tips on how to manage finances prudently.<\/p> \n

Fast Budget<\/a> is available on both Google Play and the Apple Store, and it lets you manage your personal finances and track your money, expenses and budget.<\/p> \n

Going online and cutting down on paper usage can also help save the earth from waste and pollution – a little goes a long way.<\/p> \n

3. Cheques are slowly becoming a thing of the past<\/h2> \n

If you owe someone money six decades ago, the common way of paying them back was via cash if they were near you or maybe through cheque if they lived in a different state.<\/p> \n

But thanks to digitalization, we can now easily send and receive money from literally anyone in the world.<\/p> \n

Money transfers can be done via online banking like Maybank2u, or via online money transfer apps like Venmo, PayPal or TransferWise. You could also transfer money via e-wallets like Boost and GrabPay. These transactions can be done under a few minutes and would usually take 2-3 days to process.<\/p> \n

These technologies also extend to online shopping – you can easily complete a payment by logging into your online bank account or via e-wallet.<\/p> \n

Malaysians are clearly aware of the ease provided by online money transfers, as it is currently the most-used e-commerce payment method in Malaysia, accounting for almost half (46%) of all transactions or RM7.5 billion in 2017, and is expected to grow to 48% by 2021, according to JP Morgan<\/a>.<\/p> \n

At this point, cash only makes up 7% of e-commerce transactions, and is expected to be overtaken by digital wallets by 2021, especially with the prevalence of cash-on-delivery providers throughout Malaysia.<\/p> \n

The rise of digital payments is one of the reasons behind Malaysia\u2019s booming RM16.6 billion e-commerce market which has seen annual sales expand significantly since 2015, jumping 47.8% in 2017 alone.<\/p> \n

As part of the country\u2019s migration to electronic payments (e-payments), the country is aiming to reduce cheque usage<\/a> by more than half from 207 million to 100 million.<\/p> \n

To do this, the Malaysian government is facilitating wider outreach of e-payments infrastructure via point-of-sale terminals and mobile phone banking. This initiative gained so much traction that even Maybank<\/a> came up with the Cheque Reduction Campaign 2018 to discourage cheque issuance.<\/p> \n

4. Almost all banks have their own mobile applications<\/h2> \n

Out of all industrial sectors, banks had to make the most adjustments caused by digital disruption.<\/p> \n

Though physical banks still exist, many of their regular services can now be carried out via online banking or via one\u2019s mobile.<\/p> \n

With just the swipe of your finger, you can send and receive money, buy plane tickets, pay bills, among other things, through your mobile. Most of these apps promote safe, personalized and secure banking.<\/p> \n

The rise of mobile banking apps in Malaysia is in tandem with the increase in smartphones users across Malaysia. Data from the Malaysian Communications and Multimedia Commission (MCMC) revealed that smartphone penetration rates<\/a> grew from 75.9% in 2017 to 78.0% in 2018 and that mobile cellular penetration rates in Malaysia was 135.4% in Q4 in 2019.<\/p> \n

a) Maybank2u<\/strong><\/p> \n

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Maybank\u2019s MAE or My Absolute e-Wallet is the only e-wallet that is integrated with a banking application. Besides sending and requesting money and paying bills, users can also book flights and movie tickets on a whim. (Image source: Maybank)<\/em><\/p> \n

Some key features of Maybank2u include instant transfers like paying bills, quick login via touch and combined balances.<\/p> \n

The app also boasts a cardless ATM withdrawal feature, and is safely guarded by three biometric features: face ID, voice ID, and of course, quick touch.<\/p> \n