Bank Negara Rounding Mechanism


The Malaysian Government wishes to announce the introduction of a Rounding Mechanism to the nearest multiple of 5 cents for over-the-counter payments to be fully implemented by 1 April 2008.

The Rounding Mechanism only applies to the total amount of a bill and not on individual items. In the Rounding Mechanism exercise, the total amount of a bill which ends in 1, 2, 6 and 7 cents will be rounded down while the total bill which ends in 3, 4, 8 and 9 cents will be rounded up to the nearest multiple of 5 cents.

The implementation of the Rounding Mechanism brings benefits to both businesses and customers. Businesses will be able to save on handling costs and for customers, it will make payment faster and more convenient.

General Guidelines of Rounding

The total amount of a bill (including goods and services subject to tax) that ends in 1, 2, 6 and 7 cents to be rounded downwards and 3, 4, 8 and 9 cents to be rounded upwards to the nearest multiple of 5 cents.

Applicable to all over-the-counter payments, be it cash or non-cash.

The Rounding Mechanism table must be clearly displayed at the point of sale to ensure customers are appropriately informed.

Receipts / bills / invoices should feature the total amount before and after the rounding adjustment.

The 1 cent coin shall continue to be legal tender.

What is the Rounding Mechanism?

The Rounding Mechanism is a method whereby the total bill amount (including goods and services subject to tax) is rounded upwards or downwards to the nearest multiple of 5 cents. In this regard, total bill amount that ends in 1, 2, 6 and 7 cents will be rounded down while 3, 4, 8 and 9 cents will be rounded up to the nearest multiple of 5 cents.

For example, a total bill amounting to RM82.01 will be rounded down to RM82.00. If it amounts to RM82.04, it will be rounded up to RM82.05.

The table illustrates how the Rounding Mechanism works:

Bill ends in centRound off to the nearest 5 centsTotal Amount of A Bill
Total amount before rounding (RM) Total amount after rounding (RM)
1,2 Down 82.01
82.02
82.00
3,4 Up 82.03
82.04
82.05
6,7 Down 82.06
82.07
82.05
8,9 Up 82.08
82.09
82.10

When will the Rounding Mechanism take effect?

The Rounding Mechanism will be fully implemented by 1 April 2008.

Why did the Government decide to implement Rounding Mechanism?

The implementation of the Rounding Mechanism will benefit many parties.

It will reduce the handling costs for businesses and for consumers, it will make payment faster and more convenient.

Meanwhile, the Government would also be able to save costs in producing the 1 cent coins when demand for the coins reduces with the implementation of the Rounding Mechanism.

Where will the rounding adjustments be reflected?

The rounding adjustment and final total will be clearly shown on the receipt/ bill.

What type of transactions are subjected to Rounding Mechanism?

All over-the-counter payments will be subjected to the Rounding Mechanism irrespective of its mode, be it cash or non-cash.

Non-cash payments include cheques and electronic payments such as credit card, charge card and debit card.

Is the 1 cent coin still legal tender?

Yes. The 1 cent coin remains a legal tender and can be used as a means of payment for any transaction as stipulated in Central Bank of Malaysia Act 1958 (Revised in 1994). Coins issued by the Bank shall be legal tender in Malaysia at their face value as follows:

DenominationMaximum Amount
50 cents Not exceeding RM10.00
20 cents, 10 cents, 5 cents and 1 cent Not exceeding RM2.00


However, members of the public may exchange their 1 cent coins, at no charge at Bank Negara Malaysia's head office in Kuala Lumpur and its branches in Pulau Pinang, Kuala Terengganu, Johor Bahru, Kuching and Kota Kinabalu.

Will Bank Negara Malaysia stop issuing 1 cent coins?

Bank Negara Malaysia will continue to supply 1 cent coin based on market demand. However, the demand for the 1 cent coin is expected to decline with the implementation of the Rounding Mechanism.

Where can I get information and make enquiries on the implementation of Rounding Mechanism?

More information can be obtained at Bank Negara Malaysia's website ( www.bnm.gov.my ).

Members of the public can also call Bank Negara Malaysia hotlines for further enquiries:

  • Bank Negara Malaysia : 1-300-88-5465

Enquiries can also be emailed to 1sen@bnm.gov.my.