How to Trade Shares or Stocks in Bursa Malaysia

Today Trade Share shall look at the implementation of “Rounding Mechanism” by Bank Negara Malaysia that will come into effect on 1st April 2008.

Below is the exact quote from Bank Negara website:

The Malaysian Government wishes to announce the introduction of a Rounding Mechanism to the nearest multiple of 5 sen 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 sen will be rounded down while the total bill which ends in 3, 4, 8 and 9 rounded up to the nearest multiple of 5 sen. sen will be

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:

Bank Negara Malaysia Rounding Mechanism

General guidelines of rounding

The 1 sen coin shall continue to be legal tender.

Looks like all business will have to spend more money in changing their Cash Management System in order to show the rounding of the final bills amount.