Five-sen coin's future hangs in balance

The future of the Malaysian five-sen coin is uncertain as its role in daily transactions declines with the rise of digital payments. Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour stated that while there is still demand for the five-sen coin, especially in the retail sector, the decision to continue issuing it will be based on economic needs.

Malaysian Retailers Association president Datuk Andrew Lim Tatt Keong expressed concerns that discontinuing the five-sen coin could lead to higher prices for goods, reducing consumers' purchasing power. He questioned if there might come a time when only 50 sen coins are used, potentially eliminating the need for smaller denominations and increasing costs.

However, Prof. Chung Tin Fah from HELP University argued that the five-sen coin no longer holds significant economic value, as prices can be priced in five-sen increments but physical coins are no longer necessary. He also noted that producing the five-sen coin costs more than its face value. Bank Negara Malaysia Numismatic Gallery curator Wan Muhammad Danial Wan Omar explained that Malaysian coins have evolved since their introduction in 1967, with a trend towards smaller sizes and lighter weights to reduce costs and improve efficiency.

The first two series of coins included six denominations, but the one sen and one ringgit coins were withdrawn in 2012, leaving four denominations in the current Third Series.