Tabling of Consumer Credit Act to be expedited to protect consumers: Dr M
Putrajaya will expedite the process of tabling the Consumer Credit Act to provide protection for consumers and promote healthy credit markets, said Prime Minister Dr Mahathir Mohamad.
The Act will be tabled in Parliament this year, he told media...
Putrajaya will expedite the process of tabling the Consumer Credit Act to provide protection for consumers and promote healthy credit markets, said Prime Minister Dr Mahathir Mohamad.
The Act will be tabled in Parliament this year, he told media after launching National Financial Literature Strategy 2019-2023 at Sasana Kijang today.
"This year. Yes, as soon as possible," he told media after the event when asked when the new bill will be tabled in Parliament.
The next Dewan Rakyat sitting will commence on Oct 7.
At the event earlier, he said the government wishes to expedite the bill because the country's household debt stood at 82.1 percent of the country's gross domestic product (GDP).
"This is higher than other countries which have higher income per capita, such as Italy (40.3 percent of its GDP), Japan (58.1 percent) and US (76.3 percent)," he said.
While noting the risk posted by the high household borrowing is still under control, he admitted there were signs that the borrowers are having difficulty repaying their loans.
"This happens especially to those who earn monthly wages RM5,000 and below ,and reside in urban areas," he said.
He drew the conclusion from the increasing number of borrowers who have joined the Debt Management Programme initiated by Bank Negara Malaysia.
"I was made to understand approximately 80 percent of the participants of the porgramme were too optimistic about their ability in repaying their debts and bearing their living costs. Some of them did not even think of the debts they would have to pay when they committed to borrowing," he said.
The new Act will ensure consumers will receive fair treatment when dealing with creditors, he said.
Meanwhile, a video featuring Mahathir gave Malaysians a glimpse of his financial management and some foolish investments he made.
According to him, he used his ministeral wages to make foolish investments which cost him a small amount of money.
"I remember losing money, but it was a small amount, I can't remember exactly. I did do some foolish things," he told media when met later.
"The money that I had ever since I became the minister of education, was the money I invested rather foolishly in all kinds of... I have not made a single sen," he said in the video.
Mahathir said he did not favour borrowing as he would feel the burden of repayment.
He said he only borrowed once to purchase his house.
Are you sure you want to delete this comment?
This action cannot be undone.