Last updated on October 11, 2025
KUALA LUMPUR, 22 September 2025 — In a bid to modernise small and medium-sized enterprises (SMEs) in Malaysia, Affin Bank Berhad has partnered with the Financial Intelligence and Unit of Utilities (FIUU) to drive adoption of cashless payment systems. The collaboration seeks to empower SMEs with digital payment tools, promote financial inclusion, and enhance traceability while supporting the government’s broader digital economy ambitions.
The initiative was unveiled today at a briefing in Kuala Lumpur where senior executives from both Affin and FIUU outlined their shared goal: to reduce dependence on cash transactions among SMEs, particularly in underserved and semi-urban areas, while ensuring regulatory compliance in anti-money laundering (AML) and transaction monitoring. According to the announcement, the programme will deploy user-friendly digital payment platforms, support training for SME owners on digital literacy and cybersecurity, and incentivise adoption through lower transaction fees and possible subsidies.
Under the partnership, SMEs participating in the programme will gain access to point-of-sale (POS) systems compatible with multiple digital wallets, QR-code payments, and integration with invoicing tools. The aim is not only to make payments easier for customers but also to help SMEs maintain more accurate financial records, which can facilitate credit access and better financial management.
For many SMEs, the hurdle has not just been the cost of digital payment tools but trust, know-how, and compliance concerns. Affin and FIUU intend to provide support mechanisms: workshops, help-desks, and risk-assessment tools to assist small businesses in adopting digital payments safely, securely, and in line with regulatory standards. The initiative is expected to roll out in phases, beginning in major urban and suburban districts, before expanding to rural towns where banking infrastructure may be less robust.
Investor-Angle
From an investment perspective, the Affin-FIUU partnership has implications for several stakeholders. Payment technology providers stand to benefit if SME uptake proves strong, as recurring transaction volume can generate stable fee income. Banks such as Affin may see long-term gains in deposits and transaction flows, reduced reliance on cash handling (which carries cost and operational risks), and strengthened credit profiles among SME customers who build better financial records.
On the regulatory and macro front, promotion of cashless systems aligns with Malaysia’s push for transparency and traceability in financial flows, which may help reduce systemic risk and improve confidence among international investors. However, execution risks are real: SMEs may be wary of digital fraud, costs of hardware, or hidden fees. Market adoption will depend heavily on ease-of-use, the robustness of customer support, and infrastructure in semi-urban/rural areas.
If successful, this move could contribute to a more digitised, inclusive financial ecosystem in Malaysia. It may also signal to other banks and fintechs a rising opportunity in servicing SMEs—not only as loan customers but as clients of value-added digital payment and financial management services.
