Poor RM1500/month man!

While reading Catcha Malaysia News - : "Malaysia to tighten credit cards rules amid bankruptcy surge: official", I was drawn to the simple fact proposed by Finance Minister's Parliamentary Secretary, Hilmy Yahya.

He mentioned that the minimum salary of 1,500 ringgit to own a credit card was too low and unsuitable with the present cost of living.

'A person earning 1,500 ringgit a month with five children and living in a rented house was considered poor', he said. 'And if he has a credit card, it will only burden him with more debts,' he added.


How do you define 'poor' in Malaysia? If it is indeed a fact that the same guy is considered poor, isn't he is in a greater need of easy financing scheme, as how this credit-card people has been providing all theses whiles?

Yes, it is indeed the pregorative of the same individual to spend within his means and not to overspend. He should be wise enough to avoid ending up being the additional statistic to the list of Malaysian being bankrupts due to failing to pay credit card bills!

Getting back to the main issue, HOW DO WE DEFINE POOR in MALAYSIA?


The original news cached:-

KUALA LUMPUR, May 18 (AFP) - Malaysia plans to impose tighter guidelines for the issuing of credit cards amid a sharp rise in bankruptcies after people failed to settled their payments, an official said Wednesday.

Finance Ministry Parliamentary Secretary Hilmi Yahaya said the central bank was looking into new conditions to reduce incidents of bankruptcy due to credit card debt.

Among the measures being considered were an increase in the minimum salary requirement for individuals to own a credit card and rise in the monthly minimum payment, he was quoted as saying by Bernama news agency.

Hilmi said 1,397 credit card holders were declared bankrupt last year, up from 1,152 people in 2003 and 1,117 in 2002.

More than 6.6 million credit cards had been issued by the banks in Malaysia of which 5.6 million people were principal holders, he said.

Hilmi said the minimum salary of 1,500 ringgit to own a credit card was too low and unsuitable with the present cost of living.

A person earning 1,500 ringgit a month with five children and living in a rented house was considered poor, he said.

'And if he has a credit card, it will only burden him with more debts,' he added.


All rights reserved. This material may not be published, broadcast, rewritten or distributed. All reproduction or redistribution is expressly forbidden without the prior written agreement of AFP.

Powered By "