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Groups laud move to reduce household debt

Property News/ 19 November 2011 Leave a comment

KUALA LUMPUR: Banks and related industries backed the move by Bank Negara in pushing for responsible financing to enhance consumer protection and reduce household debt.

“Banks will continue to engage closely with their customers by providing advice to ensure debt commitments are within their repayment capacities,” said Association of Banks Malaysia executive director Chuah Mei Lin.

She added that the new guidelines reflected the existing approach taken by its member banks.

The Federation of Malaysian Consumers Associations said the policy was a step in the right direction towards reducing household debt, but consumers needed to be more responsible in managing their finances.

“Too many young people are getting themselves deep in debt,” said its chief executive officer Datuk Paul Selvaraj.

He added that they usually accumulated the debts between the ages of 20 and 30.

National House Buyers Association secretary-general Chang Kim Loong said banks must evaluate an applicant’s true income more stringently before granting loans.

“Banks also should not be allowed to charge excessive fees for early termination,” said Chang.

Real Estate and Housing Developers Association of Malaysia president Datuk Michael Yam said he believed there would not be any untoward incidents with the new guidelines.

He said this was because people, especially those who took loans to buy property, knew how to self-regulate.

“This is based on the low percentage of non-performing loans,” said Yam.

He added that those possibly in danger of falling into debt were young people without family support.

Malaysian Automotive Association president Datuk Aishah Ahmad welcomed the guidelines but was concerned that if too stringent, the move would affect car sales.

“Checking on affordability is the right thing to do as there is still a lot vehicle repossession taking place because consumers purchase beyond their means,” she said.



SOURCE: The Star

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  1. Buyer
    November 19th, 2011 at 17:15 | #1

    The problem with Malaysia is, it likes to have everything a developed country
    can provide.The administration of Malaysia does not have the capablity to
    develope the economy of M’sia to a higher standard of living ( average yearly
    income of 50k ). Produces Proton cars with prices that do not show local price,
    yet they are locally make and the price of property is surging due to
    speculations.

    We still have, in fact most of the factories are paying their operators with a
    monthly basic income of Rm 420.00 and degree holders (3 yrs. in employment)
    from 2k to 3k. The salaries of the factories workers have been stagnant for
    years since the introduction of foreigners into the factories.

    Definitely this young generation will be in huge debts couple with the rising
    prices of foods and essential goods.This government fails to raise the
    incomes of the people. To set new guidelines is actually to safeguard the
    banking industry from collapsing thus safeguarding M’sia from becoming
    bankrupt.

    To tackle such household debt is to provide malaysians workforce with a
    decent and sustainable wages. Start sending back and stopping the
    approval of permits for foreigners is the first step what the authority must
    do and not just setting new guidelines to make it difficult for the people of
    this nation to obtain loans.

  2. really no hope
    November 20th, 2011 at 20:56 | #2

    You are right. What you thinking of is good for the country and I agree but who will implement it? Politician is a good business man, they only know how to make profit and do not care for the others, how for you and me to have a good life if our country is control by a bunch of business man. Their pocket is full for few generation just by talking and implement thing that will only make them rich. Even a binocular bought by the goverment agency cost RM30k while it only cost RM3k and it is nothing wrong and no people protest again this thing.

    Where is the people who care about the nation welfare? The politician do not act as they are the parents of the nation where and the nation is their family, they only thinking of themself, we are their slave where we work and pay tax for them while they just spend all of our money.

    The nation only want few thing, cheaper goods, cheaper property, safe environment, good education standard, better transportation, good economy (we need to come out with more world recognise product in our country and do not just depend on investor) and peaceful country to stay. 50 years and it is still not enough for them. LMAO

    Just one word for property in penang, expensive and it won’t depreciate because nothing is been done for that to happen. Property bubble is not going to happen but the debt for everyone in the future is going to be higher and if anything happen to the economy, everyone just need to declare bankrupt because of the high debt they have. Some rich ppl think that won’t affect them but jobless rate higher, crime rate get higher too. So rich ppl migrate and left all poor and medium class ppl in this country. Politician can quit anytime they want if the country is in trouble and no one care.

  3. Buyer
    November 20th, 2011 at 23:35 | #3

    For a start especially doctors,engineers,lecturers and lawyers must not be
    allowed to enter politic until they reach the age of 55 or more.This is to
    prevent the shortage of professionals in their professions. If they are
    allowed to enter politic at a younger age,the tendency of corruptions to
    happen will be high.Why ? Just plain simple reasoning,at this age is where
    each and everyone after graduating is out to the real world to make money.

    And for the goverment’s enforcement agencies such as the MACC and police
    must be free to act against any wrong doings.In another word, they must be
    an independent agencies. No more for Attorney General to decide to prosecute.

    Thirdly all goverment servants must be dealt with severe punishment if found
    to be involved in corruptions and that include sacking. No more cover-ups and
    tranferring he/she to another agency or other states in M’sia. Light
    punishment must be in the form of suspension from work without wage.

    Increment of wages must not be automatic but base on performances.Such
    performances will include the grading of punctuality,medical leaves and
    commitments in their works. No automatic promotion unless one has a good
    performance for a period of 5 years.

    Employments in the public sectors must be base on merits and experiences.
    A good leaving school certificate must be taken into account to act as a
    reference. All these will depend on the seriousness of the goverment to
    implement if it really want a good governance.

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