A recent ruling from Bank Negara that requires moneychangers to collect personal information from all customers has not been well-received by the public. Many are concerned that their details may be sold to scammers or reported to the Inland Revenue Board (LHDN).
Under the new rule, individuals exchanging foreign currency worth RM3,000 or less are now required to provide their full name, identification card number, and date of birth. Previously, only those exchanging more than RM3,000 were required to provide such information.
Foreigners exchanging currency need to show their passports as well. In contrast, those changing less than S$5,000 in Singapore do not need to provide personal details.
Since the implementation of the new rule on Feb 6, moneychangers in Johor have experienced a significant decrease in transactions as Malaysian workers are choosing to exchange their money in Singapore instead.
Mohd Ali Hassan, a daily commuter to Singapore for work, finds the new rule confusing and inconvenient. He is worried that his information might be misused or reported to the income tax department. He used to exchange money in Johor where rates were sometimes better, but has now switched to Singapore.
Similarly, Wendy Tan has also started changing her money in Singapore due to concerns about potential misuse of her details. She was surprised when asked for her information to exchange just S$200. She believes there is a risk of personal data leaks.
While Tan understands the need for Bank Negara to monitor currency exchange activities, she feels the public should have been given more notice to prepare. Many are now opting to change money across the border.
Moneychangers in Johor are also feeling the impact, with some reporting a drop of at least half in their business since last month. One moneychanger expressed concern about losing regular customers and mentioned potential illegal outflows of ringgit to Singapore due to increased demand there.
He highlighted the time-consuming nature of the new requirements, with each transaction now taking up to five minutes compared to 20 seconds previously, especially with customers having long names. Another experienced moneychanger echoed these sentiments and expressed hopes for a solution from Bank Negara to address the issues.
Continued decline in business could potentially lead to layoffs for moneychangers in Johor Baru, as operational costs become harder to sustain. Concerns were raised about the impact on daily wage earners who rely on remittances from Singapore to support their families.
