Bank Negara Malaysia has introduced rules designed to further tighten control over household debt in the country, a spokesperson for the Kuala Lumpur-based central bank tells PaymentsSource.
The bank has set 24,000 ringgits (US$7,860 or 5,545 euros) as the new minimum annual income requirement for credit card applicants, up from 18,000 ringgits per year previously, according to the spokesperson, noting the new income requirement is effective immediately and allows for no exceptions.
In addition, cardholders who earn 36,000 ringgits or less per year would be able to hold credit cards from no more than two card issuers, the spokesperson says.
“If existing cardholders who fall within this income requirement hold cards from more than two issuers, they will need to designate two preferred issuers by Dec. 31 this year,” he adds.
According to central bank data, 50% of the 3.2 million credit cardholders in Malaysia have an income below 36,000 ringgits.
Under the new regulations, consumers have two years to repay any debt from cards they would have to cancel to meet the new requirement, and the issuer must restructure the debt to accommodate such cardholders.
“Also, the maximum credit limit extended to a cardholder, per card, will not exceed two times their monthly income,” the spokesperson says.
This is not the first time banking authorities in Malaysia have tried to rein in the country’s credit card market. In 2009, the Malaysian government introduced an annual tax of 50 ringgits on every primary credit card and 25 ringgits on every supplemental credit card (
What do you think about this? Send us your feedback.
