In March 2011, Bank Negara Malaysia announced a new financial guideline to promote prudent financial management among credit card users.
The main objective of the guidelines is to stop the rise in household debt, which stood at RM580bil at the end of 2010. Credit card debt, was about 5% of this or approximately RM30bil.
Credit extended by the banks to the credit cards holders was much higher at RM124bil. This means that most of the card holders were not borrowing on credit cards because interest rates on credit cards are so prohibitively high.
The rates going to be much higher soon, as much as 1.5 percent higher than the current rates. The table below is the current & soon to be tier rates.
On 21st December 2011, Bank Negara had officially launched the new 2012 currency series of Banknotes. The news regarding the new 2012 banknotes and coins was out since May 2011.
The newly designed banknotes are issued in the denominations of RM1, RM5, RM10, RM20 and RM100 and will be available for circulation starting in the second half of 2012. RM20 note is making a comeback after removal from the circulation a few years ago.
The RM50 denomination banknote for the new currency series is already in circulation. The new series featuring polymer substrate materials for the RM1 and RM5 banknotes.
Bank Negara Malaysia (BNM) will issues a new series of Malaysian banknotes and coins and it will be circulated in early 2012. The issuance of new design is a normal exercise where it is to be taken every twelve years.
The theme of the design of the new currency series will include features that are distinctively Malaysia and will include enhanced security elements due to advancements in technology for currency notes.
The issuance of new banknotes is the fourth series, design of banknotes. It will come in the denomination of RM1, RM5, RM10, RM20 and RM100.
At the Monetary Policy Committee (MPC) meeting on 5th May 2011, Bank Negara Malaysia decided to raise the Overnight Policy Rate (OPR) by 25 basis points to 3.00 percent with immediate effect. The floor and ceiling rates of the corridor for the OPR are correspondingly raised to 2.75 percent and 3.25 percent respectively.
Following this, banks will Base Lending Rate (BLR) & Base Financing Rate (BFR) later. For those who have variable loans specially home loan, will have to pay more in their monthly installment. On the positive side, the increase also will raise the current fixed deposit rate. For the latest BLR & BFR rate kindly refer to Rate Page.
In the efforts to promote prudent financial management among credit card users and to ensure credit card debt remained at manageable levels, Bank Negara Malaysia announce new guidelines on credit cards.
It also also aimed to promote fair and responsible business practices by credit card issuers and to further enhance credit cards security.
Guidelines for Cardholders