KPKT enhances community credit management system to be at advanced level

KUALA LUMPUR: The Ministry of Housing and Local Government (KPKT) is actively enhancing the community credit management system to ensure it is at the ‘state of the art’ level and meets the current needs of the industry.

Its Minister, Nga Kor Ming said the system will be comprehensively used not only in terms of licensing regime management but also covers insurance protection for borrowers.

“The industry must welcome the government’s initiative by developing a positive corporate image to enhance market confidence towards the community credit industry, in addition to always complying with the Moneylenders Act 1951 (Act 400) and the Pawnbrokers Act 1972 (Act 81) and regulations

“In addition, the industry must adopt innovations that can enhance business sustainability and competitiveness amidst changes as well as implement corporate social responsibility (CSR) as a contribution to the community through impactful programmes and initiatives,” he said during the MADANI Credit Awards (AKM) 2024 ceremony here yesterday.

To ensure the moneylenders (PPW) and pawnbrokers (PPG) industries remain relevant and evolve in line with current demands, Nga said his ministry is in the process of digitalising licensing management.

He said the KPKT had also issued Online Moneylending Guidelines as a reference for licence holders, local authorities and stakeholders involved in online moneylending transactions.

“As of Sept 30, the KPKT has approved 44 PPW licence holders to carry out online moneylending,” he said.

Regarding tonight’s event, he said the awards ceremony is aimed at giving recognition to licenced PPW and PPG companies for their initiatives and efforts of the industry players in ensuring compliance with the laws and regulations.

“This ministry received a total of 264 entries for all 14 categories of excellence from 66 PPW and PPG companies. The categories involved comprised aspects of excellence in implementing innovation, social responsibility and sustainability as well as competitiveness,” he said.