To combat the shadow economy activities that result in tax evasion, the government is putting into place two major measures, the Tax Identification Number (TIN) and the e-invoice. According to Deputy Finance Minister Datuk Seri Ahmad Maslan, the shadow economy was expected to account for 30.2% of the nation’s GDP between 2000 and 2009.
But from 2010 to 2019, it fell to 21.2%. Ahmad Maslan cited the country’s introduction of the goods and services tax (GST) from 2015 to 2018 as the cause of the fall. He continued by saying that the GST’s introduction is known to lower the shadow economy by 10%.
“However, there has been no statement regarding the implementation of GST for the upcoming year. So, without GST, how can we decrease the shadow economy?The strategy is to use electronic invoices, which the prime minister recently mentioned during the budget presentation. The introduction of TIN, which started in 2022, is another approach.
“These methods are based on best practices adopted by tax authorities in other countries to address the issue of the shadow economy,” he said at a news conference held after the launch of the Kocek Coin Conversion Service (Kocek) here today.
The phrase “shadow economy” essentially refers to commercial ventures that are against the law, such as the black market or organised crime.
In the meantime, Pertama Digital Bhd and Pos Malaysia Bhd jointly announced the introduction and expansion of Kocek services.
Through the cooperation, Kocek will be able to provide its cutting-edge coin conversion services at Pos Malaysia locations all around the country. The service, which is now offered at four Klang Valley locations, is anticipated to grow to roughly 30 outlets by the end of 2023.
In 2024, Kocek services will gradually spread to additional states, with a goal of opening 100 facilities. According to Datuk Ahmad Nazri Abdullah, chairman of Pertama Digital, through the alliance, Pertama Digital will have access to all Pos Malaysia branches countrywide and be able to offer enterprises and merchants Kocek coin conversion service (Kocek In) and coin purchasing convenience (Kocek Out).
Through the business’s MyPay application, which enables frictionless connection with particular governmental authorities, the Kocek service is accessible. In the near future, Pertama Digital intends to aggressively roll out the service throughout Malaysia.
“We are grateful to Pos Malaysia for this partnership, and we think that all parties involved will benefit from it.
“The Pos Malaysia outlets are the ideal complement to our efforts to digitise and reach as many people as we can. People may easily turn their extra coins into more spending money using Kocek, Ahmad Nazri pointed out.
The introduction of Kocek in Pos Malaysia branches, according to Pos Malaysia group CEO Charles Brewer, is a real testament to the company’s promise to provide seamless solutions for the requirements of the community on a daily basis.
“Kocek represents more than mere convenience and embodies Pos Malaysia’s values of constantly driving innovation and delighting our customers,” he stated.
Pertama Digital started the Kocek services to encourage Malaysians to recirculate their leftover coinage. A sizable portion of the coins that Bank Negara Malaysia issues each year are not returned for recirculation; it is estimated that up to 30%, or more than 200 million pieces, of these coins wind up being kept unused at home in jars and drawers as “dead coins.”
To assist the people in converting their collection of useless coins into digital currency value that is deposited to their bank accounts, Kocek offers quick service and easy access. As a result, there will be less need to produce and distribute new coins, which will let the central bank issue money at a lesser cost.
