KUALA LUMPUR: The Housing and Local Government Ministry (KPKT) is upgrading the community credit management system to a state-of-the-art level to better align with the industry's current needs.
Its minister Nga Kor Ming said that the enhanced system will be used comprehensively to manage licensing processes and improve consumer protection through the introduction of insurance mechanisms for borrowers.
He said that the initiative is part of the ministry's digitalisation efforts to ensure the moneylending and pawnbroking industry remains relevant while also rebranding the sector.
"The ministry is actively implementing a digitalisation process that extends beyond licensing management to support the industry's transition from traditional to digital markets," Nga said during the Madani Credit Award 2024 ceremony.
He expressed hope that the ministry's initiatives would gain strong support from industry players, particularly through compliance with the Moneylenders Act 1951 (Act 400) and the Pawnbrokers Act 1972 (Act 81), as well as adherence to related regulations.
Nga also urged stakeholders to prioritise building a positive corporate image to enhance market confidence, encouraging them to embrace innovation to improve business sustainability and competitiveness.
Additionally, he proposed the implementation of corporate social responsibility (CSR) initiatives to contribute positively to society through impactful programmes and activities.
Meanwhile, Nga highlighted that the award ceremony is part of the government's efforts to acknowledge the industry's importance and rebrand it as more professional and competitive.
"The community credit industry is a traditional sector that has existed in this country since the pre-independence era.
"It plays a critical role in supporting the stability of the microeconomic chain within grassroots communities, particularly focusing on subprime borrowers," he said.
The Madani Credit Award 2024 attracted 264 entries across 14 categories of excellence from 66 moneylender and pawnbroker companies, covering areas such as innovation, social responsibility, sustainability, and competitiveness.