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Malaysian 1 sen coin to be phased out

Thursday, November 15th, 2007

I’m one day late with this news, but better late than never, eh? The Malaysian government announced yesterday that by 01 April 2008, the ubiquitous 1 sen coin would no longer be legal tender. This effectively means that the consumer has about five months to get rid of whatever 1 sen coins they have lying around in their pockets, purses, cars and houses before it becomes a worthless copper coin. The Bank Negara says it will save RM18 million yearly on production of 1 sen coins with the implementation next year.

However, consumers are informed that ALL payment totals will be either rounded up or rounded down depending on the final total. I wonder whether the consumer will benefit from this move or will businesses stand to gain more? In the long run, I think businesses will stand to gain in the long run as I’m sure that prices of a lot of goods will be ‘restructured’ to take advantage of this situation. This is even more incentive for me personally to save more because this ‘penny saved’ can never be earned again in the future!