Rounding Mechanism
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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:
| 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 82.02 | 82.00 |
| 3,4 | Up | 82.03 82.04 | 82.05 |
| 6,7 | Down | 82.06 82.07 | 82.05 |
| 8,9 | Up | 82.08 82.09 | 82.10 |
General guidelines of rounding
- 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.
- Applicable to cash or non-cash payments made over-the-counter. On-line transactions are not included.
- The Rounding Mechanism table must be clearly displayed at the point of sale so as to ensure customers are appropriately informed.
- Receipts should feature the total amount of the bill before and after the rounding.
- 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 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
