From early this year, Bank Simpanan Malaysia (BSN), the so-called Government Bank terminated the use of passbooks for pensioners. Pensioners will now have to use their ATM cards to retrieve their pensions.

No more passbooks will be allowed or updated. This action by BSN shows total disregard and contempt for the needs and welfare of pensioners. Many pensioners, who are senior citizens, have depended on their passbooks to personally retrieve their pensions since they first received their pensions.

Many pensioners have never used ATM cards, feeling more safe and comfortable with their passbooks not only to retrieve their pensions but also to monitor their accounts.

With this new policy, which FOMCA regards as a harsh and cruel policy, pensioners, especially the older pensioners who have no experience or confidence in using the ATM machine, now have to depend on third parties to retrieve their pensions.

Hopefully, these third parties would be honest. But if they are not, without a passbook, pensioners would have great difficulty to ascertain whether the correct amount has been withdrawn. It should be noted that there are many pensioners in their 70s and 80s.

They often have to depend on their children or neighbours to drive them to the bank, while they retrieved their monthly pensions.

Now, they would additionally need the assistance of their children and neighbours to retrieve their pensions through the ATM machine. What is worse, if being not confident to use the ATM machine on their own, they wanted to withdraw cash from the counter; this avenue has also been blocked.

To withdraw cash from the counter, one needs to retrieve a minimum of RM 5,000; an amount way above what most pensioners receive for their pension payments.

Additionally, without a passbook, they would have great difficulty in ensuring that the correct amount has been withdrawn. It might be awkward to request the ATM slip to check, if their money had accurately been retrieved by their children or neighbour, to ensure that the right amount has been withdrawn.

Further, NCCC has received complaints from consumers from some banks where monies deposited in banks have gone “missing”. Without a passbook, it would be extremely difficult to monitor the movement of their monies to ensure that it is safe.

What is particularly shocking is that some commercial banks, with their focus on profits, despite the policy of going paperless, have continued to allow senior citizens to maintain their passbooks.

BSN considered a government bank appears to show total disregard and contempt for consumers, especially senior citizens.

FOMCA appeals to the government to force BSN to reinstate the policy and practice of allowing senior citizens to continue use of the passbooks.

The government has announced its vision of “People First”. Surely, this must include the welfare and needs of senior citizens, especially pensioners. For the purpose of efficiency, to seriously create difficulties for senior citizens is both cruel and insensitive.

FOMCA calls on BSN as well as all banks to practice the policy of using passbooks, especially for senior citizens. FOMCA calls on the government of Malaysia, Bank Negara as well as the Pension Department to ensure banks, especially the so-called Government Banks to put the needs of the senior citizens of Malaysia ahead of any efficiency policies and practise.

Often it is said that society is evaluated by how it treats its most vulnerable members. It is time the government seriously practices its slogan of “People First”.

Government institutions should lead by modelling “People First” policies and practices, so that the more profit oriented institutions can follow their model.

In this case at least, BSN should follow the example of some commercial banks who are truly practising policies that put “People First”.

Dato’ Paul Selva Raj
Secretary General of the Federation of Malaysian Consumers Associations (Fomca)