Bank Negara Malaysia (BNM)'s new responsible financing guideline, introduced in November last year, has severely damaged PROTON EDAR Dealers Association Malaysia's sales, with only 30 per cent of applicants securing car loans in the first two months of the year.
Its president, Armin Baniaz Pahamin, said the growth of the automotive industry depended on customers' ability to secure financing to buy a car.
"If this measure is not reviewed our automotive industry, which supports economic growth, will slowly collapse, as the average Malaysian population is not able to meet the guideline," he added.
In a statement today, the association said BNM should encourage healthy competition among bankers to provide financing for buyers and provide a standard procedure of compliance for the public to refer to when buying a car.
Armin also said the new guideline would give rise to illegal "loan sharks" and promote unproductive population, with vehicle loan approval rate, decreasing.
"When the banks are more stringent, it provides a better opportunity for loan sharks to grow, and it was already at its prime even before the guideline was introduced," he added. -- Bernama
Its president, Armin Baniaz Pahamin, said the growth of the automotive industry depended on customers' ability to secure financing to buy a car.
"If this measure is not reviewed our automotive industry, which supports economic growth, will slowly collapse, as the average Malaysian population is not able to meet the guideline," he added.
In a statement today, the association said BNM should encourage healthy competition among bankers to provide financing for buyers and provide a standard procedure of compliance for the public to refer to when buying a car.
Armin also said the new guideline would give rise to illegal "loan sharks" and promote unproductive population, with vehicle loan approval rate, decreasing.
"When the banks are more stringent, it provides a better opportunity for loan sharks to grow, and it was already at its prime even before the guideline was introduced," he added. -- Bernama
