In support of the national agenda of “Going Green”, Bank Negara Malaysia will recycle fit banknotes of RM1 and RM5 denominations for the coming Hari Raya Aidilfitri. This   initiative is an effort in collaboration with Kementerian Tenaga, Teknologi Hijau dan Air (KeTTHA), the Association of Banks in Malaysia (ABM), the Association of Islamic Banking Institutions Malaysia (AIBIM), Malaysian Environmental NGOs (MENGO) and Yayasan Anak Warisan Alam (YAWA) to promote sustainability of our resources and conservation of the environment.
 
Polymer substrate was introduced in 2004 for the RM5 toenhance banknote durability and to reduce the high costs and demands on the resources involved in currency production. The use of polymer substrate was widened to include the RM1 in 2012 when the RM5 polymer banknote yielded a positive track record. Polymer banknotes last 2 to 3 times longer than cotton-paper banknotes. Printed on highly durable substrate, the RM1 and RM5 banknotes can remain in circulation longer with better ability to retain their security and aesthetic qualities throughout their useable life. Given that only high quality banknotes will be recycled, members of the public are therefore encouraged to use these fit banknotes for ‘duit raya’.
 
Every year Bank Negara Malaysia issues about 750 million pieces of new RM1 and RM5 banknotes to meet the seasonal demand for Hari Raya Aidilfitri and Chinese New Year. However, about 70% of the issued banknotes are not required for normal payment transactions. These banknotes are returned as deposits soon after the festive season resulting in the accumulation of excess RM1 and RM5 banknotes at Bank Negara Malaysia. The printing of an additional 500 million pieces to meet the festive demand results in high costs and demands on our resources. Its production consumes more than 80 tons of ink and 2 million kWh of electricity which is enough to power 7,500 Malaysian homes for a month.
 
For this festive season, the public is assured that there will be sufficient banknotes of all denominations. ABM and AIBIM will join this promotion to facilitate the recycling of fit banknotes by issuing them through bank branches and ATM machines. Members of the public are encouraged to support this national effort of “Going Green” and celebrate the month of Ramadan and Hari Raya Aidilfitri with the spirit of reducing wastage by supporting the use of recycled banknotes.