Finance Minister must explain TnG fracas

KUALA LUMPUR, Apr 9 – Deputy President Datuk Seri Mohamad Hasan urged the Finance Minister to come forward to provide an explanation on the move by Touch ‘n Go Group (TNG) to offer a personal loan program.
He said that until now, no explanation has been given by the minister or the government on the need and logic of this loan.

“Touch ‘n Go Group (TNG) has expanded its network by offering a new personal loan program called GOpinjam.

“However, the interest rate is unreasonable and too high, which is between 8% to 36%. Compliance with Bank Negara regulations is not the question here. What is in question is that all this will ensnare the people into severe and persistent indebtedness.
“The interest rate of the GOpinjam personal loan program is the highest in the credit market and is offered with a very convenient turnover rate. The scheme is targeted at the B40 group whose financial situation is already depressed. It does not spill over into each other like an “ah-long” licensed loan scheme that ensnares the necks of borrowers and is impossible to settle for those who are already experiencing financial difficulties, “he said in a statement posted on Facebook.
He added that Bank Negara Malaysia (BNM) should restrict such credit loan models in order to protect the B40 group and young people who are at high risk of falling into the personal debt arena which is already very high in Malaysia.
He added that the ratio of household debt to Gross Domestic Product (GDP) for the end of 2021 is at 89%, one of the highest compared to the regional economy.
“The household financial economy will be bad with a pile of debt with high interest rates as well as low incomes. Eventually, it will destroy the well -being of a family.
“The Minister of Finance must come up with an entrepreneurial solution to empower low -income people. Launching a sophisticated Ah Long scheme such as GoPinjam is against the trust and aspirations of a responsible Government, “he said.- UMNO Online