Ministry's awards ceremony for money lenders, pawnbrokers causes stir

An event to honour moneylenders and pawnbrokers, organised by a ministry led by DAP vice-chairman Nga Kor Ming, has caused a stir and sparked a flood of comments online, with many on social media saying it showed that the Chinese-dominated party was increasingly using its position in government to reward an industry that is seen as part of its ecosystem.

On Nov 15, the Ministry of Housing and Local Government hosted the Madani Credit Awards 2024, which brought together moneylenders and pawnbrokers who service those who have not been able to obtain loans from banks.

The awards ceremony, which was jointly organised with associations of moneylenders and pawnbrokers, was the first of its kind in Malaysia.

MalaysiaNow has learnt that the idea to organise the event came from Nga himself.

The event was held at the Berjaya Times Square Hotel and was attended by the hotel's owner, billionaire tycoon Vincent Tan, among others.

"One of the main objectives of the event is to dispel the public's negative perceptions about the money-lending industry and portray it as a reputable business that is different from loan sharks," said a source in Nga's ministry, who remained strictly anonymous to MalaysiaNow.

When asked, former housing and local government minister Zuraida Kamaruddin confirmed that there were no such awards ceremonies for moneylenders during her tenure.

Loan sharks are unauthorised money lenders who have been targeted by law enforcement agencies such as the police and local councils over the years following an increase in violent crimes against defaulting borrowers.

Last year, there were more than 4,400 licensed moneylenders and 881 pawnshops with a market value of nearly RM25 billion.

Among the companies that were honoured with various awards at the event were Juara Partners Sdn Bhd, Choong Thye Pawnshop Sdn Bhd, Kekal Impian Sdn Bhd, Stratford Credit Pawnshop Sdn Bhd, Semuamas Resources Sdn Bhd, Choong Yee Pawnshop Sdn Bhd, GHL Payments Sdn Bhd, Pajak Gadai Ion Sdn Bhd, Pajak Gadai Moneymax (Sungai Way) Sdn Bhd and OSK Capital Sdn Bhd.

A quick look at the websites of some of the companies revealed a range of personal loan offerings.

One of the companies charges an 8% penalty for late payments, while another company offers secured loans for property.

There have been comments piling up on social media, criticising the ministry's gestures towards the money lending business.

"Their interest rates are insanely high. It's just easier to borrow money and easier to go broke," said one of hundreds of comments on a viral clip of the event.

Another commentator said that the ministry should discreetly check whether licensed money lenders are complying with the relevant laws and regulations.

"Try to take out a loan, even if it's a small amount. See what happens after two days. How much do the (interest) rates go up?" wrote Jamil Rais.

When contacted, an organisation which has often highlighted the plight of victims of unscrupulous moneylenders said that while the event did not break any laws, the public was still concerned about the moneylending business, whether legal or not.

The Malaysian International Humanitarian Organisation (MHO) said there were many licensed lending companies that flouted the law and manipulated loan agreements with unsuspecting clients.

"Given a choice, it would be better for the ministry to organise awareness programmes to educate the public about money lenders rather than holding an awards ceremony to celebrate these companies," said MHO secretary-general Hishamuddin Hashim.