Every year, Bank Negara Malaysia (BNM) shares its annual report, a detailed snapshot of our economy, financial policies, and how they shape life for us Malaysians. While the report is a treasure trove of insights, its 300+ pages of analysis might not fit into everyone’s busy schedule.
We’ve distilled the essentials so you can stay informed without the deep dive. Here are five key takeaways from the BNM 2024 Annual Report related to your financial well-being.
Transforming Malaysia’s Digital Payment Ecosystem
BNM reported strong growth in e-payments in 2024, with transactions rising 28% to 14.7 billion. Malaysians averaged 409 e-payment transactions per person, a 19% increase from 343 in 2023. This means most Malaysians now make at least one e-payment daily, compared to just once a week ten years ago.
Online banking remained the most popular payment method, growing by 24% and making up 39% of all e-payments. Mobile banking accounted for 62% of online banking transactions, up from 50% in 2023.
Electronic money, including e-wallets and card-based e-money, was the second most used method, representing 38% of transactions with a 25% YoY growth. Payment cards comprised 22% of transactions, growing 20% over the year.
DuitNow QR has grown significantly, with 2.6 million registered acceptance points nationwide. This expansion led to transactions more than doubling, reaching 870 million and totalling RM31.1 billion. Through BNM’s e-Duit Desa program, over 800 micro-merchants in rural areas were onboarded into accepting e-payments over 2024.
A follow-up study in Pulau Redang showed that 90% of merchants now accept e-payments, with 70% receiving most of their payments electronically.
Cross-border payment connectivity has expanded with a new QR payment linkage to Cambodia, adding to existing connections with Indonesia, Singapore, and Thailand. Cross-border QR transactions have grown significantly, reaching 4.1 million transactions worth RM348.3 million.
BNM is also working on Project Nexus to link multiple domestic instant payment systems worldwide.
BNM has enhanced regulatory oversight by amending the Money Services Business Act 2011 and introducing new tools to monitor operational risks. Looking ahead, as Malaysia takes on the ASEAN Chairmanship in 2025, the focus will be on strengthening regional payment integration while maintaining public trust in payment systems.
Faster, Fairer Motor Claims Settlements
Bank Negara Malaysia (BNM) has enhanced the Claims Settlement Practices Policy Document (CSP PD) to make motor insurance claims faster, fairer, and more transparent.
These updates require general insurers and takaful operators (GITOs) to shorten claim processing times and inform consumers about the Own-Damage Knock-for-Knock (OD KfK) option, which allows claimants to deal with their own insurer for accidents they didn’t cause without affecting their No-Claim Discount (NCD).
GITOs must also publish a Motor Customer Service Charter (MCSC) outlining service standards and expected turnaround times.
Additionally, the revised policy clarifies the difference between Actual Total Loss (ATL) and Beyond Economic Repair (BER) claims, helping consumers make informed decisions. If dissatisfied with a claim decision, consumers can seek help from the Financial Markets Ombudsman Service (FMOS) or BNM LINK.
Greater Availability of Financial Access Points via Mobile Banks
Physical financial access points remain crucial in helping consumers transition to digital banking, with Malaysia ranking among the highest in the region—serving 95% of mukims.
In underserved areas, agent and mobile banks provide essential services, with 44% of mukims relying solely on them. BNM continues efforts to support the remaining 46 unserved mukims.
In 2024, the Government allocated RM10 million to expand the Bank Bergerak Initiative (BBI), which conducted 18 programmes across ten states, reaching over 7,400 people. A Digital Financial Literacy survey showed improved financial awareness in areas served by BBI.
Additionally, PayNet introduced the interbank cash deposit service to improve cash deposit access in rural areas, with nine providers enabling the service by end-2024 and two more set to join by February 2025. These efforts align with the second Financial Inclusion Framework to enhance financial access nationwide.
Digital Banks Take Root to Expand Financial Access
BNM continues to foster a regulatory environment that encourages responsible innovation in the financial sector while managing associated risks. Since their licensing in 2022, all five digital banks have received approval to operate.
By December 2024, three digital banks had launched their products, attracting RM2.3 billion in deposits from 1.3 million customers, nearly 60% from underserved segments, including low-income households and rural communities, according to the BNM 2024 annual report.
Beyond savings and payments, digital banks began offering financing products in late 2024, improving access for early-stage businesses, self-employed individuals, and sole proprietors. With fully digital applications and data-driven credit assessments, these banks provide tailored financial solutions, even for those with limited credit histories.
Future expansions could include microloans, invoice financing, and in-app financial education to enhance financial literacy and economic empowerment, the BNM 2024 annual report states.
Aside from that, in July 2024, BNM introduced the Licensing and Regulatory Framework for Digital Insurers and Takaful Operators (DITOs) to boost competition, efficiency, and financial inclusion.
Applications for DITO licenses are open from 2 January 2025 to 31 December 2026, paving the way for new players to address protection gaps and meet evolving consumer needs.
Malaysia’s Strategy to Elevate its Payment Infrastructures
BNM sees asset tokenisation as a key driver of financial innovation, complementing its research on domestic and cross-border central bank digital currencies (CBDCs), as mentioned in the BNM 2024 annual report. One promising area is tokenised deposits, which could serve as a secure on-chain settlement asset alongside wholesale CBDCs.
Issued by regulated banks, these deposits would retain the stability of commercial bank money while benefiting from programmability and atomic settlement.
Beyond tokenised money, BNM is exploring broader applications of tokenisation in areas like programmable payments, supply chain finance, and liquidity management.
A discussion paper on asset tokenisation will be issued in 2025 to guide industry participation. BNM’s Regulatory Sandbox will continue supporting the live testing of innovative solutions using distributed ledger technology (DLT).
While BNM has no plans to recognise crypto assets as legal tender, it will monitor developments to safeguard monetary and financial stability. Moving forward, increased collaboration with the private sector will help shape Malaysia’s approach to tokenisation, balancing innovation with risk management.
