Recent news reports alleging that a very large number of the RM 1 coins in circulation are fake is both incorrect and misleading.

Bank Negara Malaysia views such inaccurate information very seriously and advise members of the public to disregard these reporting or claims and refer to Bank Negara Malaysia for information. Further details on the withdrawal of the RM1 coin can be obtained from Bank Negara Malaysia’s website (http://www.bnm.gov.my) or by contacting the Currency Management and Operations Department of Bank Negara Malaysia at 03-2698 8044 ext 7442 / 7417.

There have been isolated cases of forgeries in RM 1 coins but they do not involve significant amounts. Bank Negara Malaysia has been working very closely with the Royal Malaysia Police in such cases and action were promptly taken.

The withdrawal of the RM 1 coins is due to the low demand and increasingly unpopular usage of RM1 coins for purchases of goods and services in Malaysia. The RM1 coins currently accounts for less than 1% of the total value of currency in circulation in Malaysia. Since the year 2000, Bank Negara Malaysia had increased the circulation of the RM1 banknotes and coins in other denominations to replace the RM1 coins in meeting the demand of the public.

Bank Negara Malaysia would like to reiterate that the RM1 coins remains legal tender until 6 December 2005. All businesses must continue to accept the RM1 coins and the public can exchange their RM1 coins during the three months period of 7 September to 6 December 2005.