MALAYSIA’S surging use of digital wallets may be creating the country’s next major pool of unclaimed assets, with an estimated RM135 billion now sitting in e-wallets and other digital funds.
According to Arham Merican, chief executive officer and co-founder of Sampul.co, these balances risk becoming effectively lost if Malaysians fail to include them in their estate plans.
He said the country’s existing challenges with frozen and unclaimed assets already demonstrate the scale of the problem.
“Malaysia reportedly has RM13.3 billion in unclaimed funds and RM90 billion in frozen assets, showing how widespread this issue already is,” he told Business Times.
Arham warned that in the absence of proper planning, beneficiaries may find themselves unable to access a loved one’s digital holdings after death.
Digital wallets have become deeply entrenched in the country’s cashless economy, with platforms such as Touch ’n Go eWallet, Boost, GrabPay, ShopeePay, Maybank QRPay and BigPay widely used for everyday transactions, transport, food delivery and online shopping.
Yet, while consumers have rapidly embraced digital payments, their estate arrangements have not kept pace.
Economist Dr Yeah Kim Leng of Sunway University said the RM90 billion in frozen assets—the result of unresolved estates—represents almost 5 per cent of Malaysia’s 2024 GDP. He described the sum as productive capital effectively “locked away”.
“If these assets were fully invested or channelled into productive sectors, such as small businesses, infrastructure projects, or capital markets, they could contribute roughly 1.25 per cent to GDP growth,” he said, basing his estimate on a typical incremental capital-output ratio for developing economies.
“Unlocking these resources could not only stimulate broader economic activity but also generate employment, raise household incomes, and increase consumption, creating a multiplier effect that benefits both communities and the government through higher tax revenues.”
Dr Yeah added that long-running inheritance disputes trap wealth in the system, limiting the money multiplier effect and slowing economic circulation.
“This reduction in liquidity weakens the money multiplier effect, the mechanism through which each ringgit in the financial system generates additional economic activity, and leads to subpar growth and diminished wealth creation for both families and the broader community,” Business Times cited him saying.
Properties in limbo and unclaimed bank balances, he added, cannot be sold, reinvested or used to generate income.
Beyond macroeconomic consequences, he noted the human impact on families unable to access inherited funds for education, healthcare or business needs.
“Inheritance is an essential intergenerational transfer that preserves family wealth and social mobility. When families cannot pass on assets, it risks widening inequality,” he said.
Arham said the problem is aggravated by Malaysia’s slow, paper-heavy probate process, which typically takes 12 to 24 months.
During this time, a deceased person’s accounts—including joint accounts in certain cases—are frozen.
He observed that many Malaysians underestimate the administrative hurdles until they confront bereavement, with missing nominations, incomplete wills or the absence of Hibah structures further delaying matters.
He noted that while Malaysia’s digital banking ecosystem has modernised rapidly, estate governance remains fragmented across Amanah Raya, civil courts and Syariah courts.
Documentation requirements—ranging from asset verification and debt settlement to Faraid calculations and court certifications—create multiple points of delay.
Court backlogs, limited public awareness and reliance on intermediaries such as lawyers and trustees add further time and cost.
“These layers of delay prevent families from resolving matters efficiently and add emotional strain during an already difficult period,” he said.
Even straightforward probate cases can take six to 12 months, Arham said, while complex estates may remain frozen for two years or more.
Financial institutions are legally obliged to freeze accounts immediately upon notification of a customer’s death, and no transfers may occur until a Grant of Probate or Letter of Administration is issued.
Arham cautioned that the challenge is extending into digital finance. “Assets held in digital banks, e-wallets, and crypto wallets risk remaining inaccessible or unclaimed if the owner’s details are not properly recorded or linked to an estate plan.”
He said the solution lies in closer collaboration between financial planners, licensed trustees and technology platforms.
He added that Sampul.co, a Cradle-funded startup, aims to help create a trusted ecosystem for comprehensive estate planning that includes digital holdings. - December 1, 2025
