Tonton Dfm2u
Last week’s award ceremony for approved lenders was meant to boost the sector’s image, a government source said today, after it was criticised online for being a tribute to “Ah Long” (loan shark).
“The allegations suggest that the minister is giving gifts to Ah Long, which is wrong,” a source from the Ministry of Housing and Local Government told FMT. The source defended the decision to host the Madani Credit Awards 2024, following criticism that the event held last Friday was aimed at rewarding companies often associated with illegal lending.
Instead, the event aims to reposition the lending and pawnbroking industry as a professional sector that provides essential credit access to underserved communities, the source said. The source dismissed allegations that the award ceremony was politically motivated.
The source said that the licensees and buyers operate under strict guidelines set by the ministry, with a maximum interest rate of 2 percent per month. “These services provide a lifeline for communities that cannot access bank loans, helping to avoid the use of illegal loan sharks.
Without this access, vulnerable communities may turn to unregulated lenders, the source said. The source also confirmed that some pawnbrokers are publicly listed on Bursa Malaysia, further demonstrating the sector’s legitimacy and contribution to the economy.
Earlier in the day, online media outlets reported that the event, organised by ministers led by DAP deputy chairman Nga Kor Ming, had faced criticism from netizens. Some said this showed that the Chinese ruling party was using its political clout to support the industry as part of its ecosystem.
The awards ceremony, organised in partnership with pawnshop and credit unions, was the first of its kind in Malaysia. As of September 30, there were 4,315 licensed lenders, including 3,141 operating in Peninsular Malaysia under the ministry’s regulations.
The remaining 1,174 licensees in Sabah, Sarawak and Labuan fall under the jurisdiction of the licensees. At the same time, there are 902 authorized traders nationwide, coordinated by the Ministry.