EconomiCs from MalaysiA

Several MPs surround Tan Sri Nor Mohamed Yakcop after the debate to seek clarification yesterday. Seen here are (from left) Lim Lip Eng (Segambut), Loh Gwo Burne (Kelana Jaya), Fong Po Kuan (Batu Gajah) and Fong Kui Lun (Bukit Bintang

KUALA LUMPUR: Banks will soon be coming up with ways to help housing loan borrowers.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the banks welcomed the government's suggestion that they restructure the payment plans to reduce the burden of borrowers.

Nor Mohamed said he had been informed by the banks that they would do so.

The lower repayment on loans will ease the burden of the borrowers, he said at the "second" winding-up session of the debate on the Mid-Term Review of the Ninth Malaysia Plan at the Dewan Rakyat yesterday.

On Bank Negara's decision to allow banks issuing credit cards to stop the 20-day interest-free period on the purchase of retail items, Nor Mohamed said BNM was introducing a tier-pricing structure to encourage credit card users to be more careful and smart in their spending.
He said three types of tier-pricing structures had been introduced to enable credit card holders to enjoy a lower finance charge of up to 15 per cent a year compared with 18 per cent currently.

"This tier-pricing structure will help to reduce the cost of credit card usage compared with the previous system which charged 18 per cent."

With this system, Nor Mohamed said the previous offer of 20 days repayment period without interest enjoyed by all credit card holders, without taking into account the monthly credit card payment, will be discontinued.

He said he had meetings with all banks and had asked them to review the matter and they had agreed to do this.

Nor Mohamed had wound up the debate on the Finance Ministry on Tuesday but members of parliament from both sides of the house complained that he had left many questions unanswered.

Nor Mohamed stressed that while he agreed to return to continue with his replies, he did not want this to become a precedent.

This was because his decision would "eat" into the time allocated to other ministers waiting for their turn to speak.

"I need to respect my fellow ministers. We have 19 other ministries that have yet to wind up their debates and we are very short of time."

When Nor Mohamed resumed his replies, several MPs bombarded him with questions on the fuel subsidy.

Fauziah Salleh (PKR-Kuantan) suggested a subsidy system where cards would be issued to individuals and tailored according to their financial status and needs.

Nor Mohamed said the government was working on a tiered system to ensure more effective disbursement of subsidies.

"However, at present, we do not have the appropriate data system in place for its immediate implementation.

"I assure members of the house that the government is in discussion with the relevant parties towards implementing this system," he said.

Nor Mohamed, who started speaking at 11.45am, stopped at lunch time and refused to entertain calls for an extension.

Speaking to reporters at the lobby, Nor Mohamed denied allegations by some opposition MPs that his winding-up speech on Tuesday was inadequate.

"My answers were adequate but there were lots of questions from the MPs and the time for answering all of them was limited.

"I have no problem returning. What's important is to ensure that the government policies are fully understood by the people as they are being implemented to help take care of their needs."

Nor Mohamed said there were some issues, like those related to subsidies, which many found hard to understand.

"This is the opportunity for me to explain in detail. Although there were interruptions from the opposition, I find that the members accept my explanation," he said.