Fintech Players Welcome Malaysia’s New Online Lending Guidelines
The Ministry of Housing and Local Government unveiled last week a new guideline that will allow for licensed moneylenders to provide loans digitally. Zuraida Kamaruddin Minister of Housing and Local Government said that these new guidelines were released with microentrepreneurs in mind, who are typically unable to secure loans from banks.
Eight operators were granted the first batch of approval to provide online loans, they include; Axiata Digital Capital Sdn Bhd, BigPay Later, Grabfin Operations (M) Sdn Bhd, GHL Payments Sdn Bhd, Presto Credit Sdn Bhd, JCL Credit Leasing Sdn Bhd, Fortune Tree Capital Sdn Bhd, and Hoop Fintech Sdn Bhd.
Minister Zuraida Kamaruddin anticipates that with the approval of these 8 players, more licensed moneylenders will come forward to seek approval to do the same. According to the minister currently, there are 4572 licensed moneylenders in Malaysia with the largest bulk of it coming from Sabah with roughly 1,600 operators followed by Selangor with 893.
Danny Leong, Group CEO, GHL Berhad, explained that the new guideline allows companies like his to fully digitise the process, compared to the previous guideline which required for borrowers to physically show up to sign the loan agreement at the registered premise of the lender, with CCTV recording, and face to face meeting with an attester.