The limit is for physical cash transactions. If you need to transfer make more than 25K RM, then you need to do it electronically.[1] I don't think that's a huge problem for the people.
It could be a big problem for people who go around doing their daily business with hard cash as there is the cap of 25k RM. The only upside for such people is that it becomes much easier to transact big sums of money after depositing it in a bank and then sending it through the online payment method.
I'm not sure how they will monitor it though, maybe need to read the full policy draft.
Its quite easy for the government to monitor
ALL of the transactions happening online with the use of a unified payment system model which is undoubtedly being developed for this purpose.