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Introduction of a Rounding Mechanism for Over-the-Counter Payments
The Malaysian Government wishes to announce the introduction of a rounding mechanism to the nearest 5 sen for over-the-counter payments to be fully implemented effective 1 April 2008.
The Rounding Mechanism only applies to the total amount of a bill and not on individual items . In the Rounding Mechanism exercise, the total amount of a bill inclusive of tax, which ends in 1, 2, 6 and 7 sen will be rounded downwards to the nearest multiple of 5 sen while the total bill which ends in 3, 4, 8 and 9 sen will be rounded upwards.
The table below illustrates the Rounding Mechanism:
| Bill ends in sen |
Round off to the nearest 5 sen |
Total Amount of A Bill | |
|---|---|---|---|
| Total amount before rounding (RM) | Total amount after rounding (RM) | ||
| 1,2 | Down | 82.01 82.02 |
82.00 |
| 3,4 | Up | 82.03 82.04 |
82.05 |
| 6,7 | Down | 82.06 82.07 |
82.05 |
| 8,9 | Up | 82.08 82.09 |
82.10 |
The implementation of the Rounding Mechanism would benefit both consumers and businesses. For the members of the public, the rounding mechanism will enable payments to be made faster and more convenient and for businesses it will reduce handling costs.
Demand for 1 sen coins will be reduced as a result of the rounding mechanism exercise. However, the 1 sen coin will continue to remain as legal tender for payment of goods and services.
Ministry of Domestic Trade and Consumer Affairs
Bank Negara Malaysia
13 November 2007
© Bank Negara Malaysia, 2007. All rights reserved.
