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 new rules Bank Negara–the country’s central bank–introduced in March, the new minimum annual income requirement for credit card applicants is 24,000 ringgits (US$7,860 or 5,545 euros), up from 18,000 ringgits previously. In addition, cardholders who earn 36,000 ringgits or less per year would be able to hold credit cards from no more than two issuers, according to the central bank’s order, which took effect immediately (
The new rules will force banks to promote the use of debit cards among those customers who because of this income requirement no longer would be able to get credit cards. As a result, debit card use should rise by 50% to 70% this year, according to the association.
Malaysia financial institutions as of end of 2010 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. In 2010, consumers in Malaysia spent an average of 9,338 ringgits per credit card compared with 141 ringgits per debit card, according to data from the Bank Negara.
