KUALA LUMPUR, May 24 — The market value of the community credit industry in the country was estimated to have reached RM24.8 billion last year.
Housing and Local Government (KPKT) Minister Nga Kor Ming said this amount includes the value of loans and pawn transactions involving moneylenders (PPWs) and pawnbrokers (PPGs).
He said the market value of the industry is expected to continue growing annually, playing a significant role in supporting the economic chain, particularly within the community and micro sectors.
“There are two main segments of PPW borrowers — corporate and individual. From 2021 to last year, corporate borrowers made up 62 per cent, while individual borrowers comprised the remaining 38.
“As of April, there were 4,416 licenced moneylenders, including 3,306 in Peninsular Malaysia regulated by the KPKT and 1,110 in Sabah, Sarawak and Labuan regulated by their respective state licensing authorities,” he said during the pre-launch of the Madani Credit Awards here today.
In the same period, he said there were 881 licensed PPGs nationwide, regulated by the ministry.
He also advised the public to avoid unlicensed PPWs or “Ah Long”, which do not protect consumer interests.
“When taking a loan, ensure the process follows proper procedures and involves fully licensed parties. Choose registered and licensed lenders, as they comply with the Moneylenders Act 1951 and the Pawnbrokers Act 1972 to ensure transparency,” he said.
On the Madani Credit Awards, Nga said it aims to recognise licenced PPW and PPG companies for their compliance initiatives.
“The inaugural ceremony on November 15 will offer 14 awards, including the Special Minister’s Award for PPW and PPG, Most Valuable Business and Best Innovation,” he said.
— Bernama
