INSIGHT

Loan approval rate for Malaysia sector

Author: Admin Publish Date: 02-09-2019
Updated On:  18-11-2019



The approval rate for automotive has been quite constant over the past few years. Despite the bank's willingness to offer hire purchase loan for automotive, the total industry volume (TIV) has been quite stagnant over the past few years. A high percentage of car ownership, sluggish income growth, depreciation of Ringgit Malaysia and a high excise tax for the motor vehicle have inhibited the growth of the automotive industry in Malaysia.
 
Hopefully, the strengthening Ringgit and the launch of several new models can spark an interest in changing a new car among the public.
 
Also, I was chatting with my colleague during lunch and realize that her credit card application has been rejected. She has a promising job position and no outstanding loan. After checking with Bank Negara Statistics, only I found out that the approval rate for credit card application has been decreasing over the past few years. With a tighter credit policy targetted at the youngster, how the economy can prosper as a youngster are usually more willing to spend compared to their elder counterpart?

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