According to experts, the government stands to benefit from the shortening of the lapse period to forfeit unclaimed money, as it will expand the revenue that can be used for the welfare of the people. Dr Yeah Kim Leng, an economics professor at Sunway University, suggests that the unclaimed money, amounting to RM11.9 billion as of April last year, can be utilized for socioeconomic development.
Majority of the unclaimed money comes from dormant bank accounts that have been inactive for seven years or more. Currently, all unclaimed money is moved to the government’s Consolidated Revenue Account after 15 years, but there are plans to reduce this period to 10 years by amending the Unclaimed Moneys Act 1965.
Dr Yeah predicts that this change in legislation will provide a significant boost to the government’s coffers, which can be used to reduce the fiscal deficit, fund operational expenditures, or increase development spending in sectors like healthcare, which are currently underfunded.
Idham Idris, director of Wealth Vantage Advisory Sdn Bhd, also sees benefits to the government from both a fiscal and administrative perspective. By transferring unclaimed money to government revenue sooner, it can be channeled into developmental projects or public welfare initiatives, leading to economic stimulation and improved public services.
He also highlights the cost savings associated with managing unclaimed money, as a shorter holding period could reduce the resources needed for this purpose. However, he emphasizes the importance of ensuring that Malaysians still have the right to reclaim their funds.
Idris stresses the need for the government to make sufficient efforts to notify Malaysians with unclaimed funds in the Consolidated Trust Account and create awareness about the available funds that need to be claimed. He suggests that a shorter lapse period may not be a significant change if the government already has data on funds reaching a certain threshold and becoming unclaimed indefinitely.
He also cautions against using the unclaimed funds for short-term operational expenditures, emphasizing that transparent and accountable use of the money for developmental projects and public welfare initiatives would be more justifiable. Projects such as infrastructure, education, healthcare, and social welfare programs could benefit from this funding.
Individuals can check if they have unclaimed money by registering for a profile on the eGUMIS portal. This move to shorten the lapse period for unclaimed funds, if utilized effectively for the benefit of the people, could lead to further development and enhancement of public services in Malaysia.
