Malaysia plans to impose tighter guidelines for the issuing of credit cards amid a sharp rise in bankruptcies after people failed to settled their payments, an official said today.

Finance Ministry Parliamentary Secretary Hilmi Yahaya said the central bank was looking into new conditions to reduce incidents of bankruptcy due to credit card debt.

Among the measures being considered were an increase in the minimum salary requirement for individuals to own a credit card and rise in the monthly minimum payment, he was quoted as saying by Bernama news agency.

Hilmi said 1,397 credit card holders were declared bankrupt last year, up from 1,152 people in 2003 and 1,117 in 2002.

More than 6.6 million credit cards had been issued by the banks in Malaysia of which 5.6 million people were principal holders, he said.

Hilmi said the minimum salary of RM1,500 to own a credit card was too low and unsuitable with the present cost of living.

A person earning RM1,500 a month with five children and living in a rented house was considered poor, he said.

"And if he has a credit card, it will only burden him with more debts," he added.