MONEY-LENDING FIRMS TO BE REBRANDED
This will remove the negative perception, says Zuraida
THE Housing and Local Government Ministry will rebrand moneylending companies to remove the negative perception among the public that they are unlicensed money-lending syndicates or ah long.
Its minister, Zuraida Kamaruddin, said the rebranding of these companies was expected to be done by June at the latest.
“Although the performance of these money-lending companies, which are licensed by the ministry, is good, the negative perception has made people and small traders shy away from getting loans from them,” she said after delivering her new year message for the ministry’s staff.
Zuraida said based on information from the ministry’s Moneylenders and Pawnbrokers Division, the rebranding exercise could be done by June.
At present, she said, about 3,900 money-lending companies were offering loans at lending and handling rates, which differed from those of financial institutions or commercial banks.
“We want people to realise that moneylending companies are legal, offer unlimited loans and do not demand many documents as is conditional for financial institutions or commercial banks,” she said, adding that these companies had been operating since the Moneylenders and Pawnbrokers Division was established in 2007.
Zuraida said the ministry was in talks with Bank Negara Malaysia to seek flexibility for people in the Bottom 40 (B4) income group to secure housing loans.
She said (financing) flexibility was in line with the government’s initiative to provide opportunity for the B40 group to own homes at prices up to RM300,000 a unit and on hire purchase.
She said the move to boost home ownership through the National Home Ownership Campaign, as announced in the 2019 Budget, would be launched with an exhibition by the property sector in March in Kuala Lumpur.
The three-day exhibition beginning March 1 at the Kuala Lumpur Convention Centre would gather 180 property developers. Every purchase would be given a 10 per cent discount, she said.
The last time such a campaign was held was in 1998, she added.