CASHLESS TRANSACTIONS BOOST FELDA COMMUNITY'S ECONOMIC GROWTH

By Sakini Mohd Said

PEKAN, Sept 26 (Bernama) -- Residents of Felda Chini Timur 2 no longer need to travel 60 kilometres (km) to the nearest town just to withdraw cash, as cashless transaction methods have been introduced.

The digital ecosystem, which enables faster and safer payment transactions, is seen as having high potential to create the best momentum for driving the rural economy, while also attracting the second and third generations of Felda settlers to engage in entrepreneurship.

bootstrap slideshow

Therefore, the positive impact of the existence of a cashless society has been identified as an opportunity to diversify and empower the economy of Felda residents without the need to seek employment outside the area.

Felda Chini Timur 2 chief settler Muhamad Sarid Abd Manaf, 61, said that the government's commitment to cashless access offers new hope for Felda residents, particularly young entrepreneurs who are facing challenges due to their reliance on cash.

“In Felda Chini Timur 1, there is one ATM (automated teller machine) and two at Pusat Tenun Chini 3, but they often run out of cash by the end of the month when people receive their salaries, and the ATMs also frequently break down.

bootstrap slideshow

“When this happens, the nearest ATM is in Muadzam Shah or Pekan town, which is quite far and difficult for those without transport. It may not seem like a big problem, but when cash is hard to come by, it can make it challenging for small traders to run their businesses, as well as the community here,” he told Bernama at the launch of the Cashless @ Felda Chini Timur 2 National Information Dissemination Centre (NADI) programme recently.

In this regard, Muhamad Sarid sees the launch of the programme as empowering the local community’s economic agenda through the transition from cash to digital transactions via Quick Response (QR) codes in trade.

Describing the programme as a turning point for micro and small traders to grow further, Norlaila Azua Johari, 33, said this effort is part of the government’s commitment to ensuring rural communities are not left behind in the wave of development.

“I’ve been selling ‘ayam gunting’ (fried chicken) and beverages since 2017 and started using cashless transaction methods at the end of 2022. It has not only made things easier but also helped solve the problem of receiving damaged money from customers.

“We don’t realise we’ve received torn notes from customers because they fold them, and this usually happens during busy times when there are many customers. I’ve lost more than RM1,000 during that period before switching to cashless payments,” she said.

However, Norlaila said that traders still face issues after switching to digital transactions when some customers attempt to deceive payment processes.

“Once we become aware of digital payment technology, we must continue to enhance it, and for that, I’ve purchased a QRPay soundbox that alerts me of successful payments,” she said.

Eager to expand his ‘apam balik’ business, which he started nearly two years ago, Muhammad Firdaus Hamdan, 18, said that the prospects for the food business in Felda settlements and surrounding areas are high, and he will take full advantage of digital facilities to achieve his goals.

“I used to rent a car, costing around RM100, just to go to town and withdraw cash for buying ingredients and running the business. It was tough to rely so heavily on cash, especially when the ATMs were sometimes problematic.

“So, QR code payments have been very helpful and safe. There are no theft issues here, so this type of transaction really helps small rural entrepreneurs,” he said.

When launching the programme, Chini assemblyman Mohd Sharim Md Zain said the initiative aligns with the state government’s vision through the Pahang Digital Plan (2021-2025) to create a conducive and integrated digital ecosystem between the government, the people, and the private sector.

Besides promoting a digital lifestyle among the people, it also helps boost Pahang’s image as a progressive and digital-ready state, attracting investors, he said.

“In Pahang, the Cashless @ NADI programme is being implemented in 15 locations, including at Felda Chini Timur 2. The main focus of this initiative is to ensure that micro and small traders can accept and adopt cashless payments.

“We will use the NADI centre to help the community access information related to the cashless society,” he explained.

The Cashless @ Felda Chini Timur 2 NADI programme is a high-impact initiative by the federal government through the Malaysian Communications and Multimedia Commission (MCMC) to drive the country's digital economic growth in line with the Financial Sector Blueprint 2022-2026, which aims for each individual to make an average of 400 digital transactions by 2026.

-- BERNAMA