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Rounding Mechanism

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 sen will be rounded down while the total bill which ends in 3, 4, 8 and 9 sen will be rounded up to the nearest multiple of 5 sen.

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.

The table below illustrates how the Rounding Mechanism works:

General guidelines of rounding

1. The total amount of a bill (including goods and services subject to tax) that ends in 1, 2, 6 and 7 sen to be rounded downwards and 3, 4, 8 and 9 sen to be rounded upwards to the nearest multiple of 5 sen.
   
   
2. Applicable to all over-the-counter payments, be it cash or non-cash.
   
   
3. The Rounding Mechanism table must be clearly displayed at the point of sale to ensure customers are appropriately informed.
   
   
4. Receipts / bills / invoices should feature the total amount before and after the rounding adjustment.
   
   
5. The 1 sen coin shall continue to be legal tender.
   
   

Information/enquiries

More information can be obtained at Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna's (KPDNHEP) website www.kpdnhep.gov.my or Bank Negara Malaysia's website (www.bnm.gov.my) and via their respective hotlines at 1-800-886-800 and 1-300-88-5465.

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

See Also:

Frequently Asked Questions (FAQs) on Rounding Mechanism

Last Updated Date: 02 April 2008