Debit card use in Malaysia this year should overtake credit card use, thanks to new rules governing credit card issuance in the country, according to the Association of Banks in Malaysia.
Under the rules that Bank Negara, the country's central bank, introduced in March, the minimum annual income requirement for credit card applicants rose 33%, to $7,860.
In addition, cardholders who earn $11,937 or less a year would be able to hold credit cards from no more than two issuers, according to the central bank's order.
The rules will lead banks to promote the use of debit cards among those customers who would be ineligible for credit cards because of this income requirement.
As a result, debit card use should rise by 50% to 70% this year, according to the bank association.
Through last year Malaysia financial institutions had issued 33.5 million debit cards and 8.5 million credit cards, though spending on credit cards is higher than on debit cards in the country.
