Rounding Mechanism

> Rounding Mechanism Contents

1. 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 sen. In this regard, total bill amount that ends in 1, 2, 6 and 7 sen will be rounded down while 3, 4, 8 and 9 sen will be rounded up to the nearest multiple of 5 sen.

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 below illustrates how the Rounding Mechanism works:

Bill ends in sen Round off to the nearest 5 sen Total Amount of A Bill
Total amount before rounding (RM) Total amount after rounding (RM)
1,2 Down 82.01
3,4 Up 82.03
6,7 Down 82.06
8,9 Up 82.08


2. When will the Rounding Mechanism take effect?

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

3. 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 sen coins when demand for the coins reduces with the implementation of the Rounding Mechanism.


4. Where will the rounding adjustments be reflected?

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


5. 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.


6. Is the 1 sen coin still legal tender?

Yes. The 1 sen 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:


Maximum Amount

50 sen

Not exceeding RM10.00

20 sen, 10 sen, 5 sen and 1 sen

Not exceeding RM2.00

However, members of the public may exchange their 1 sen 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.

7. Will Bank Negara Malaysia stop issuing 1 sen coins?

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


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

More information can be obtained at Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna's (KHDNHEP) website ( ) and Bank Negara Malaysia's website ( ).

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

KPDNHEP: 1-800-88-6800
Bank Negara Malaysia : 1-300-88-5465

Enquiries can also be emailed to

See Also:
About the Rounding Mechanism

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Last Updated Date : 10 April 2014
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