PUTRAJAYA, Feb 25 — At a Maybank branch here, a man who wished to be known only as Pak Cik Rahmat waited patiently in line in front of a coin deposit machine, a yellow shopping bag slung over his shoulder.
Inside the bag were not groceries, but years’ worth of loose change he had quietly set aside since his bachelor days, long before he got married.
The plastic container he brought along — the kind commonly used to store kuih raya — was filled to the brim.
Days earlier, the man in his 50s had already deposited nearly RM1,000 worth of coins. This was his second trip to the bank, with another RM800 still to go.
“I never liked carrying coins around in my pockets or wallet. It makes walking feel heavy,” he said.
For decades, every time he received coins after a transaction, he would simply bring them home and keep them in one place.
It was not a new habit, he said — just something he had always done.
But times have changed.
“We all pay with QR now,” he added, referring to the growing shift towards cashless transactions.
With fewer occasions to use coins, he decided it was finally time to put them back into circulation — through the coin deposit machine, where coins are counted and credited directly into a bank account.
Pak Cik Rahmat’s story reflects a broader trend in Malaysia, where digital payments are becoming increasingly common, but coins remain an important part of the country’s payment ecosystem.
Cash still plays a role
Bank Negara Malaysia (BNM) said that despite the upward trend in digital payment adoption, demand for physical currency remains steady.
Currency in circulation continues to grow in line with economic activity, recording a 4.1 per cent year-on-year increase in 2025.
This means the total amount of banknotes and coins held and used by the public has increased alongside economic activity, indicating that cash remains widely used despite the rise of digital payments.
The central bank said this reflects the continued role of cash as a reliable payment instrument for households and businesses.
“Coins continue to serve an important function, particularly for small-value purchases and day-to-day retail transactions,” BNM told Malay Mail.
Under the Currency Act 2020, coins issued by BNM remain legal tender for payments of up to an aggregate value of 25 pieces in a single transaction.
In other words, 25 coins is the maximum number that can be used in a single transaction, regardless of whether they are five sen or 50 sen coins.
The cost of unused coins
However, a significant portion of coins issued each year remains idle in homes and businesses, effectively removing them from active circulation.
When coins are kept rather than used, BNM said this may contribute to the need for additional production.
As such, the central bank has encouraged members of the public to either use or deposit their coins as part of normal daily spending.
To make this easier, BNM has collaborated with financial institutions to deploy coin deposit machines nationwide since 2014.
These facilities allow coins to be deposited or exchanged conveniently, before being verified, processed and recirculated.
In 2025, efforts to strengthen coin recirculation processes resulted in up to 31 per cent of coins issued being recirculated as fit coins, according to BNM.
Expanding coin collection nationwide
The central bank said it will continue enhancing coin recirculation efforts and expand collaboration with industry players this year to increase the number of coin collection points nationwide.
Aside from coin deposit machines, individuals may also deposit coins directly at financial institutions offering retail services.
Such deposits, BNM added, help ensure that coins remain available where needed across the country.
Malay Mail – Malaysia
