KUALA LUMPUR, April 4 — The loan growth of the banking institutions grew at an average of 8.74 per cent from 2009 to 2018, the Dewan Rakyat was told today.

Finance Minister Lim Guan Eng said this shows that financing facilities are available to those who want to take the opportunity to improve their quality of life.

However, he hoped Bank Negara Malaysia will allow businesses to get loans to avoid them from getting loans from “Ah Long” (loan sharks).

Although measures have been taken to curb illegal money lending, the scourge is still widespread among business owners and youths, he said when responding to a supplementary question from Hasanuddin Mohd Yunus (PH-Hulu Langat) during the Minister’s Question Time.

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Hasanuddin asked whether the government plans to tighten the rules and regulations for the issuance of credit cards.

Lim said his ministry had considered it, but was worried that tighter restriction would compel youths to seek loans from “Ah Long” which would be detrimental to them and their family.

Hence, he said many loan schemes have been introduced to empower the youth’s economies by providing job, education and business opportunities.

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Lim cited them as the BSB MyHome scheme to help single or married youths to have their first home easily, and scholarships and education loans through various agencies with an allocation of RM3.8 billion, including RM2 billion specifically for Bumiputera students from Majlis Amanah Rakyat.

The Securities Commission has also approved the framework for the equity crowdfunding and peer-to-peer lending with a RM170 million funds raised for 450 companies from various sectors, he added.

“Nearly 10,000 individuals have invested through this alternative funding platform, of which 45 per cent of the investors are youths under the age of 35,” he said.

Meanwhile, the Counseling and Credit Management Agency (AKPK) has implemented over 1,700 financial education sessions on personal financial management for more than 1.2 million people, including youths.

As at 2018, he said AKPK had assisted more than 34,000 youths who were saddled with problems in repaying their loans by restructuring their loans through the Credit Management Programme. — Bernama