Banking institution in Malaysia shouldnt have a problem in approving a loan especially in automotive market as they have not much burden on it. Now many of Automotive company in Malaysia has started to invest on their own credit organisation that will provide car loan to their own car buyers such as Naza Credit and Suzuki. But unfortunately, there are more restriction if applying loan from the credit organization and it is harder than from banking institution. Below are news from bernama about bank should be proactive in approving more loans.
BANK SHOULD BE MORE PROACTIVE – APPLYING CAR LOANS IN MALAYSIA
It is not the government’s role to function as a bank to address lending or car loan issues, International Trade and Industry Minister Tan Sri Muhyiddin Yassin said today.
“Banks should do their job properly under the circumstances. They should not be so stingy in processing applications,” he told reporters at the soft launch of the National Mark for Malaysia Brand and Brand Entrepreneur Conference 2009 here.
Also at the launch, Raja Muda Perak Raja Dr Nazrin Shah delivered the keynote address.
“If banks are not proactive, the economy will shrink,” he warned.
Muhyiddin said the government might assist businesses by giving soft loans and grants but “the bigger chunk of loans would come from the banks”.
He was commenting on a recent suggestion by Tengku Tan Sri Dr Mahaleel Tengku Ariff that the government should act as a banker to address lending issues by banks.
The former group chief executive officer of Proton Holdings Bhd said that lending issues needed to be dealt with first so as to spur economic activities, particularly in the motor vehicle and construction industries.
Muhyiddin said that banks should have no problem in giving out loans as they were in a resilient position with low non-performing loan rate and higher liquidity ratio.
“They may just be having psychological problems about what is happening in Europe and the United States,” he said.
The minister said businesses were still exporting and ordering goods and products, adding that “if the export facilities are not granted, who is going to export?”
Earlier in his speech, Muhyiddin said that banks needed to start lending and consumers needed to spend more for demand to increase.
“Only then can the wheels of the economy start churning, cross-border trades increase and the economies of nations pick up speed,” he said.