I see you have a valid point yet I was wondering where did the Malaysian Government got this idea?
Is there a precedent about this policy which was previously implemented before by other Governments and proved to have been effective?
Or is this is just a test bed and experiment for the Malaysian policy makers which I assume they don't know yet what will be the consequences of it if ever it will be finally implemented?
According to the experience that has occurred, especially in Indonesia close to Malaysia, smuggling USD 100,000 is very easy. The mode is as follows:
The Cross Border Cash Carrying (CBCC) rule requires everyone to report if they carry money equivalent to Rp 100 million if they cross a border area.
Through one of the ports close to Singapore, money launderers can go back and forth five times a day from Singapore to Indonesia, they usually come in groups of 8-15 people. Even so often the customs and immigration officers know them. They did not come for a vacation but to exchange money at a money changer.
Singapore utilizes the conditions of the surrounding countries which are rife with criminal acts of corruption to increase the country's foreign exchange. Singapore has large denominations of currencies (SGD 1000 = USD 735) and (SGD 10,000 = USD 7350). Due to complaints and requests from neighboring countries to stop the use of the SGD 1000 & SGD 10,000 fractions, Singapore stopped printing the SGD 10,000 fractions but refused to withdraw the fractions from circulation.
In Indonesia alone, the Singapore dollar is a prima donna for corruptors, every time there is a catch operation, a Singapore dollar is always found. The discovery and concern over this problem arose after corruption by one of the tax officers (lower level) in Indonesia worth USD 21 million. He was sentenced to 29 years in prison for 3 legal cases.
If that is the case, then lets see if it will be effective enough in curbing financial crimes so that it will become a model for nations that are also facing the same problem.
Now, I wish Governments at the same time could also strengthen financial crimes enforcement thru their concerned agencies because I think such policy would go in vain if there is no cooperation among different enforcement agencies including cooperation among neighboring countries which is vital in combating financial crimes. Imho.