From a technical standpoint, the recent memorandum of understanding (MoU) signed between PKNS Real Estate Sdn Bhd (Prec) and MBSB Bank Bhd (MBSB) can be seen as a strategic move to drive cashless business transactions among small and medium-sized businesses (SMEs). Specialists in the field of digital payments argue that the adoption of real-time retail payment platforms (RPPs) can significantly reduce operational expenses and streamline financial management processes. The partnership between Prec and MBSB is expected to provide SMEs with the opportunity to utilize digital payment systems, such as the DuitNow application, and promote cashless commerce.
Key Benefits of the Partnership
The partnership is expected to benefit business owners in Prec-owned structures, such as the SACC Mall and PKNS Complex in Shah Alam and Bangi, by providing them with the chance to grow their enterprise through the use of digital payment platforms. According to Datuk Nor Azam M Taib, the group CEO of MBSB Bank, the partnership will enable business owners to save operational expenses and aid in streamlining the financial management process. Additionally, the digitalization of Prec establishments is expected to attract additional customers, as digital payment is simpler, safer, and a preferred method for today’s users.
Fakru Radzi Ab Ghani, the CEO of Prec, added that the project will be implemented at the Selangor Ramadan Festival 2023, which is scheduled to run from March 5 to April 21, 2023, at the SACC Mall and the PKNS Complex in Shah Alam and Bangi. A total of 1,000 merchants are expected to participate in the sales festival, and by creating accounts with MBSB Bank and utilizing its digital banking services for business transactions, they will gain from the initiative. The site rental costs for the festival will range from RM1,000 to RM15,000, depending on the location, with a total of 2.5 million attendees expected to attend the festival this year.
Implementation and Expected Outcomes
The implementation of the partnership is expected to have a significant impact on the SMEs participating in the Selangor Ramadan Festival 2023. With 50% of the booths located at the PKNS Complex in Shah Alam, 30% at SACC Mall, and the remaining booths at the PKNS Complex in Bangi, the festival is expected to attract a large number of customers. Fakru Radzi stated that the number of merchants participating in the festival has increased this year, with more merchants interested in renting booths. Previously, the festival had around 700 merchants, but this year, the number has increased to 1,000.
The partnership between Prec and MBSB is a significant step towards promoting cashless commerce among SMEs. As the use of digital payment platforms continues to grow, it is likely that more businesses will adopt these systems to streamline their financial management processes and reduce operational expenses. The success of the partnership will depend on the ability of Prec and MBSB to provide SMEs with the necessary support and infrastructure to adopt digital payment systems.
Looking Ahead
As the partnership between Prec and MBSB moves forward, it will be important to watch how the implementation of the digital payment systems affects the SMEs participating in the Selangor Ramadan Festival 2023. The success of the partnership will likely depend on the ability of Prec and MBSB to provide effective support and infrastructure to the participating SMEs. Additionally, the impact of the partnership on the adoption of digital payment systems among SMEs in Malaysia will be an important area to watch in the coming months. As the use of digital payment platforms continues to grow, it is likely that more businesses will adopt these systems, and the partnership between Prec and MBSB will be an important step towards promoting cashless commerce among SMEs.
