KUALA LUMPUR, Aug 5 (Bernama) -- The banks may need to consider more stringent criteria on credit card issuance, said Deputy Minister of Finance Datuk Dr Awang Adek Hussin.
He said non-performing loans (NPLs) due to credit card account for RM580 million or 2.3 percent of total NPLs as at end of April, 2009, while bankruptcies due to credit cards was 550 person or 4.0 percent of total bankruptcies in 2008.
"Despite measures such as establishment of the Credit Counselling and Debt Management Agency, there remain concerns on credit card indebtedness," he said at the Budget 2010 Focus Group-Financial Sector meeting Tuesday.
This is one of the specific area raised during discussion with industry players yesterday, which will provide invaluable inputs for the formulation of 2010 budget.
As for Islamic finance, he said the government also looking various ways to position Malaysia as an international Islamic financial hub.
"I believe, we can do more to promote Islamic finance as a key niche growth area," Awang Adek said.
While, on insurance, he said there is obviously vast scope to increase the life insurance and takaful market, given the current low penetration level of 40.8 percent and 7.8 percent, respectively.
"In contrast, developed economies have market penetration of 80 percent and more," he explained.
Turned to Rakyat With Special Needs focus group meeting, he said the governmentis mindful of the hardship faced by the rakyat and will continue to provide assistance to various groups.
"We know that more has to be done. As a caring society, we need to work together towards improving the quality of life of the special groups," he said.
Thus, said the government look forward to a frank exchange of views among the key players how on they can better serve the less fortune.
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