Credit Reporting Agencies in Malaysia

The Credit Reporting Agencies Bill 2009 introduced and tabled at The Dewan Rakyat recently by Deputy Finance Minister Datuk Dr. Awang Adek Hussin is scheduled to be debated and passed during the current meeting of Parliament.

According to a report by New Straits Times, when it becomes law, private credit reference agencies such as Credit Tip Off Service Sdn Bhd (CTOS) will be controlled through registration and supervised by a registrar.

The bill will complement the Personal Data Protection Bill, which aims to protect and regulate the use of private data. The bill also seeks to ensure the credit reporting agencies and their officers will be responsible for compiling data and updating them. Often, this failure had resulted in many people, who had settled their debts or loans, remaining on the blacklist of banks.

However, credit agencies have to get written permission from customers when they require such information from the customer concerned for the first time through a notice. The notice should inform the customer to whom the information would be given to and if it is obligatory or voluntary for any of the information to be disclosed by the customer.

The agencies also cannot disclose information unless it has obtained permission from the customer. However, there is an exemption and information can be disclosed to prevent crime or when it is provided for under the law.

CIMB Petronas MasterCard- The Best Credit Card

One of the best credit cards available in the market now is the CIMB Petronas MasterCard. As a cardholder, I enjoy the following benefits:

1. No annual fee: This is a card with no joining or annual fee and there is no condition attached, as it has always been advertised that it is free for life.

2. Rebate of 2% on petrol: When you pay cash you pay the full pump price of RM1.80 per litre. However, when you pay by CIMB Petronas MasterCard you pay only RM1.764 in the following month. Just imagine you pay less and on top of it, you get interest-free credit for one month. Apart from petrol, I get a 0.5% rebate for all other retail purchases.

3. Travel benefits: When you charge the full fare of your airline tickets, you get automatic travel insurance coverage, lost baggage and baggage delay insurance and reimbursement for immediate necessities in the event of flight delay and missed connection

4. Making the payment is easy: I can do an online settlement of my outstanding balances. I can also pay at any CIMB Bank counter or use their cheque deposit machine or I can post a cheque to them. The best part is that every time when I make a payment I pay less. The 2% rebate on petrol and 05% rebates on other retail purchases are given and shown in the monthly statements.

5. Mesra card: Because you use Petronas you can join the PETRONAS Mesra Loyalty Programme for free and get a Mesra card. Points are collected each time you pump petrol or buy things at their Convenience Stores. You get 1 point for every litre of fuel purchases and 1 point for RM 1 spent on Qualifying Transactions at the Convenience Store at PETRONAS service stations.

6. Promotions: From time to time Petronas offers cash prizes and valuable cars to lucky customers of Petronas. I hope I can be the next lucky winner of a cash prize or an expensive car.

7. Interest and other charges: I don’t have to worry about interest charges because I pay fully and promptly every month.

If you are looking for a credit card especially a card to reduce your petrol expenses, get a CIMB Patrons MasterCard today. Get real rebates when you use the credit card and get reward points from your Mesra card when you pump petrol.

Petrol Price History RON 95:

12/05/2009   RM 1.75
  1/09/2009   RM 1.80
16/07/2010   RM 1.85
  1/12/2010   RM 1.90
  3/09/2013   RM 2.10
  2/10/2014   RM 2.30
  1/12/2014   RM 2.26
  1/01/2015   RM 1.91
  1/02/2015   RM 1.70
  1/03/2015   RM 1.95
  1/06/2015   RM 2.05
  1/07/2015   RM 2.15
  1/08/2015   RM 2.05

Source: http://blog.galvintan.com/malaysian-fuel-price-history/

Debt Management – Get Free and Professional Help

You need help urgently when the following situations describe your personal finance:

• If you are not in control of your money;
• Have more debts than you can manage;
• If you are living paycheck to paycheck;
• Are only able to pay the minimum 5% on your credit card bills;
• If you are taking cash advances from your credit card to meet your expenses;
• Do not have any savings to meet personal or family emergencies;
• If you have a debt collector calling you regularly;
• If you are being served legal notice of demand.

Where can you get free professional assistance in Malaysia? The answer is AKPK (Agensi Kaunseling dan Pengurusan Kredit) or Credit Counseling and Debt Management Agency. AKPK is an agency set up by Bank Negara Malaysia or The Central Bank of Malaysia to provide financial education, financial counseling, and debt management for individuals.

AKPK offers a free Debt Management Programme to individuals who fall under these categories:

• Not an undischarged bankrupt
• An individual unable to manage their own debts
• Must have positive net income
• Not under advanced legal action
• No advanced litigation take by non-FI
• No loans were taken from an institution not regulated by Bank Negara Malaysia

When you have enrolled in the DMP you have to:

• Give up your credit cards
• Change your lifestyle (modify budget/cash flow to live within means)
• Make dedicated and prompt payments

To know more about AKPK you can go to their website at http://www.akpk.org.my

4 Types of People to Avoid Using Credit Cards

Are you one of the following? If so, you should not possess credit cards. Here are the people and the reasons:

Gamblers: The best thing they can do is to give up gambling. With credit cards in hand, they will pile up debt in no time by credit card advances. They always think that by just one more bet they will be able to recover all the losses in the past

Materialistic: They want to keep up with the Joneses. They have to have the latest in a TV set, cell phone and sound system at home. Unfortunately, there is no way to keep up with the trend, because manufacturers are churning out the latest models almost every day.

Your credit cards have spending limit but there is no limit on what you want in life.

What they need are debit cards or prepaid cards and not credit or charge cards

Shopaholic: They are addicted to shopping. They can’t stop the compulsive nature to just shop and shop. What they need is counseling to get rid of the unhealthy habit and not credit cards.

Young graduates: They have just landed on their first job and they have also acquired their first credit card. They are excited to get their first spending experience on their credit cards. They were told not to worry about overspending because they could just pay the minimum amount. They do not realize that they are building up debt and leading their way to bankruptcy. What they need now are debit cards or prepaid cards to control their spending

If you think you can manage your spending within your budget and you want to pay the full amount promptly every month, go ahead and get yourself a charge card or a credit card.

Related post:

4 Types of Plastic Cards to Make Purchases

4 Types of Cards for 4 Types of People

10 Tips to Get Extra Cash Instantly

You have exhausted your emergency fund. And you have almost overdrawn your current account and there are only a few dollars left in your savings account. You need extra cash. First, identify internal sources of funds where you don’t have to incur charges or interest before you get funding from outside sources. Here are the ten sources of fund:


1. Cash your fixed deposits: Sacrifice your interest for premature withdrawal of your fixed deposit. Take out the amount you need and deposit the rest into your savings account.

2. Your children’s savings accounts: There are substantial savings over the years in your children’s savings accounts. You may withdraw but remember to top up later.

3. Liquidate part of your investment: Look into your stocks, shares, and unit trusts. Sell a small part of it to meet your cash requirements

4. Staff advance from your company: Salary advance is the quickest way to get cash without interest and charges. However, the amount will be deducted at the end of the month when you get your pay.

5. Cash value of your life policies: There is cash value in your life insurance policies. You can get a policy loan against the cash value. In fact, if one of the policies is investment-linked just do a partial redemption and you don’t have to repay. The policy is still in force.

6. Get a loan from your friends or relatives: You have to be thick-skinned. It is embarrassing to let your friends and relatives know your predicament. To maintain goodwill when you repay the loan, add a little extra.

7. Pawn your valuables: Don’t let those you know see you at the pawnshop. You can pawn your jewelry to meet your temporary needs

8. Get a personal loan from a bank: It may not be as fast as you think, but the banks are looking for people with good credit standing to give out personal loans. Be one of them. Interest will be charged to your loan and you have to repay in monthly installments

9. Get an advance from your credit card: You get immediate cash at a higher cost than a loan from a bank. You will be slapped with an advance fee and compounded interest as long as the amount is outstanding.

10. Borrow from a loan shark: This is the last resort. The interest rate is exorbitant. You have to make very sure to pay back fully on time or else this will be the beginning of your nightmare.


The best thing to do, however, is to earn some extra money to meet your cash requirements.

4 Types of Cards for 4 Types of People

There are 4 types of cards that you can use to make purchases. They are charge cards, credit cards, debit cards, and prepaid cards. Each type of card is specially catered to different people.


Charge Card: This type of card has no credit limit and you have to pay the amount fully when the statement arrives. It is for the rich and famous. They have spending power beyond the credit limit and they are capable of settling the amount fully upon receiving the monthly statements. Their lifestyle demands a card that they can spend freely and it is only limited by their spending power as demonstrated by their spending pattern. American Express is such a card.

Credit card: People who can exercise self–restrained will find this type of card useful. They don’t do impulse buying and they limit their purchases to what they need and not what they want. They pay promptly and fully and not just pay the minimum amount. They incur no late charges and finance charges. Visa and MasterCard fall into this category

Debit card: This type of card is suitable for young graduates who have secured their first job with decent pay and they want to have their first experience of using a credit card. The card is linked to their current or savings account so they will not overspend. They don’t run the risk of building up debt. You can’t use the card when your fund is exhausted. Visa and MasterCard are the issuers for this type of card.

Prepaid card: This type of card is for people who are budget conscious. They load the card with a specific amount for specific purposes and they spend accordingly. There is no overspending and there is no debt. You can get this type of card which is also issued by Visa and MasterCard.


Choose an appropriate card to suit your current lifestyle.

Credit Cards and the Malaysian Budget 2010

With effect from January 1, 2010, principal cardholders and supplementary cardholders of credit cards and charge cards will have to pay an annual service tax of RM50/- per card and RM25/= per card respectively. More and more people are using credit cards in Malaysia. The number of credit cards in circulation has increased from two million in 1997 to eleven million in August this year. This does not include 285,000 charge cards in use. Service tax of RM50/= was previously imposed with effect from January 1, 1997, and abolished on April 1, 2001. The latest service tax is to promote careful spending among Malaysians.

Credit card transactions growth dipped to 6 percent to RM38.9 billion in the first seven months of the year, compared with an 18.2 percent increase in the same period last year,

Individuals with credit card related debts seeking the services of the central bank’s Credit Counselling and Debt Management Agency increased by 38.6 percent to 7492 from a 75.9 percent growth to 5406 in the same seven-month period last year. These accounted for 74 percent of total cases under the Debt Management Programme.

For those people who are holding 5 or 6 cards, it means an extra expense of RM250/= to RM300/=.just to keep the cards. It is time for them to reduce their cards to not more than two. Too many cards mean too much temptation to overspend and too many cheques to issue to settle debts from too many banks.