Merchantrade Approved for Digital Wage Payments in Sabah

Merchantrade Asia Sdn. Bhd. has been officially recognised as an Approved Issuer of a Designated Payment Instrument (DPI) for the state of Sabah.

Effective 1 December 2025, the mandate allows employers in the state to utilise Merchantrade’s digital platforms to manage wage payments for foreign employees in compliance with the Labour Ordinance of Sabah.

Merchantrade received approval for Peninsular Malaysia back in August 2024, and this latest update complements that earlier milestone.

Employers can now credit salaries directly into workers’ “Merchantrade Money” e-wallets through a dedicated payroll portal. This system provides a modern alternative to the traditional reliance on cash disbursements.

The approval addresses specific logistical challenges inherent to the region. Sabah is a vast state spanning 7.4 million hectares, with approximately 1.7 million hectares dedicated to plantations.

Employers and workers have historically relied on cash because of the vast distances required to reach physical bank branches. Unfortunately, this dependence on physical currency poses considerable security risks.

Ramasamy K. Veeran, Founder and Managing Director of Merchantrade, stated that the move supports the shift towards digital wages.

“This authorisation for Sabah is a monumental step, strengthening Merchantrade as a leading service provider driving the digital wage revolution supported with solutions that are inclusive, and equipped with the right ecosystem of physical touchpoints to deliver our transformative solution seamlessly across Sabah,” Ramasamy said.

Beyond receiving wages, workers can use the e-wallet for services like remittances and mobile top-ups. The platform also enables cash withdrawals at ATMs through paired Visa cards.

Merchantrade also noted that it works with PERKESO to deliver social security payments directly to employees, aimed at improving financial transparency.

Featured image by Merchantrade.