News

Malaysian government to review ATM fees

September 4, 2003

DEWAN RAKYAT, Malaysia - Following criticisms from members of Malaysia's Parliament against banks for imposing fees on customers for ATM withdrawals, the Finance Ministry has directed banks to review the charges. 
        
According to a report in the New Straits Times, Finance Ministry's Parliamentary Secretary Hashim Ismail was assailed by members of Parliament each time he wanted to move on to a new point while winding up a Sept. 4 debate on the Banking and Financial Institutions Act (Amendment) 2003. Hashim ultimately gave in and said a ATM charges would be reviewed.

ATM fees showed that banks were not "customer friendly," according to MPs quoted in the New Straits Times.

MP Teresa Kok questioned Bank Negara's role in monitoring the banking sector and allowing service fees like Maybank's50 sen (about 29 cents U.S.) fee for more than four withdrawals from accounts with less than 5,000 ringgits ($1,315 U.S.) and the 8 ringgits ($2.10 U.S.) yearly fee charged by other local banks.

Kok said the public should not be forced to pay for banks' losses incurred from non-performing loans. "That's not the way to counter losses. The high NPLs is due to their inefficiency," she said.

MP Datuk Mohamad Aziz said ATMs had helped banks reduce operational costs and therefore banks should not charge consumers for using the machines.