Warning To The Reckless FinTech / Digital Microloan Gurus! – Part 1

The Trio!. From left: The famous Datuk Syed Zaid Albar from SC. Center: YB Tengku Zafrul, the famous singer “Hebatnya Ku” cum unelected Senator. Right: Tan Sri Nor Shamsiah Bte Mohd Yunus, Governor of Bank Negara Malaysia (Malaysian Central Bank)

Origin of Fintech

FinTech started by WeChatPay and followed by AliPay in China many years ago.  Both are eWallets where customers have to deposit money into their account or their credit card or direct debit card are linked to it.  There was no cause for alarm. 

A year or two ago,  eWallets were introduced by GrabPay and Touch n Go in Malaysia, there were no problems as most if not all customers spent within their means. It operated like the internationally known PayPal where the account is linked to the bank account or credit card.

Digital Microloans

The emergence of Digital Microloan that is of concern to the nation!

We all support the government to make life easier for the Rakyat especially the B40s so that they will be easily accessible for loans through financial schemes such Digital Microloans to help them.  However, at this juncture there are no laws in place to govern Digital Microloans to protect the vulnerable B40s of which consist mainly of students and low income households.

It must be noted that out of a sudden in January 2021 the Governor of Bank Negara Malaysia (BNM) (Malaysia Central Bank), Tan Sri Nor Shamsiah Bte Mohd Yunus, had announced that BNM had opened invitations for companies to apply for Digital Banking Licence from January 2021 and closing date was 30 June 2021.  This Digital Banking Licence issue went quiet until early this year.  Suddenly BNM had said that it will award this licence to the “SELECTED FIVE” companies.  Presumably the licence is to cover the public offer of Digital Microloans!   

On 30 March 2022 BNM Governor announced that “upon completion of the legal process” BNM will only announce BNM’s decision which are the “SELECTED FIVE” companies have been awarded with the said licence, HERE.

No Law To Govern Digital Microloans

It was on 30 March 2022, BNM had uploaded its Annual Report online, wherein it had admitted that it has just started to discuss with the Security Commission (SC) and Ministry of Finance (MoF) to come with up with a new Consumer Credit legislation.  Whilst they are discussing about the said new legislation, several Digital Microloan companies have already launched their products as though they had already obtained the Digital Banking Licence from BNM and received “green light” to do so.  Perhaps someone higher up had whispered to the “friendly” parties that BNM had already granted the said licence to their respective companies!  It is a case of “Malaysia Boleh” system!   

It seems that the Digital Microloan companies have already been allowed to dish out loans two to three times the B40’s monthly salary.   

The Unelected Minister of Finance, Tengku Zafrul Was Encouraging Members Of The Public: Don’t ask. GOpinjam.” Most Irresponsible!

(From left) Alan Ni, CEO of Touch ‘n Go eWallet,Effendy Shahul Hamid, Group CEO of Touch ‘n Go Group, the unelected YB Senator Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Finance Malaysia, Datuk Mohd Nasir Ahmad, Chairman of CIMB Group and Dato’ Abdul Rahman Ahmad, Group CEO of CIMB Group posing for a group photo after the launch of A Break Through Consumer Financing Product. —SAMUEL ONG/The Star

It is scary!  At this rate, perhaps “nasi sudah menjadi bubur” by the time our most proactive unelected Finance Minister, Senator Tengku Zafrul, is ready to read this Consumer Credit Bill in Parliament for approval!   

BNM, SC and the unelected Senator are taking this Digital Microloan very lightly!  Our nation is doomed for disaster in a matter of a few years and when the Digital Microloan bubble burst then we will witness many B40s will be in misery. Digital Microloan operators and bank will also go bust!  To take whatever remedy actions then will be futile as it will be a case of “closing the stable door after the horse has bolted”!  

It seems that under the watch of the best unelected Zafrul, Malaysians are suddenly being encouraged to participate in the Digital Microloans under the pretext of helping B40s. The latest motto of Zafrul was: “Don’t ask any question. Just borrow”!  It would appear that this unelected minister has been on a launching and promotion spree of the Digital Microloans for companies without putting the relevant laws in place to protect the Rakyat from being exploited.  This was most irresponsible to say the least. Then what do you expect from an IRRESPONSIBLE “Tongkat Assisted” Minister!  

Mushrooming of Fintech / Digital Microloan Products

Out of the blue, we saw the mushrooming of FinTech asuch “Buy Now Pay Later Schemes” (BNPL), eWallets, Digital Microloans and the like in Malaysia.  

BNM must be forewarned that such FinTech / Digital Microloans is very attractive to the majority of the ordinary Rakyat namely the B40s group.  Such schemes are easily accessible to B40s whereas normal loans are usually out of reach for them in the conventional financial institutions due to stringent rules and procedures.  

The operators of FinTech / Digital Microloan are in fact identical to banks in a smaller scale but without strict laws to control them at this moment.  In short, FinTech / Microloan operators more concern with volume of borrowers and 100% profit driven. Of course, that is to say to help the rakyat! This is a dangerous trend!  It seems that our most ambitious unelected Finance Minister is walking a fine line between ingenuity and impulse here but with his so-called brilliance, it is assured that Malaysia will be doomed with disasters in a few years’ time if this situation is allowed to go without the consumer credit legislation in place.  

To be continued.

Next Change for Part 2 – Stay Tuned!

Wheeling & Dealing in MCMC? Part 3 – MoF said “NO” to direct award of contract but …

Yg Bhg Dato' Mohamed Sharil Mohamed Tarmizi, the Chairman of MCMC
The well dressed and highly respected Chairman of MCMC, Yg Bhg Dato’ Mohamed Sharil Bin Mohamed Tarmizi.


A week has elapsed and the MCMC Chairman, Yg Bhg Dato’ Mohamed Sharil Mohamed Tarmizi, is still exhibiting his elegant silence on the issue of MCMC awarding the Programe Marketing office (PMO) to Orenda Kuantum Digital Sdn Bhd (Orenda Kuantum Digital) by way of direct award.  Continue reading “Wheeling & Dealing in MCMC? Part 3 – MoF said “NO” to direct award of contract but …”

Now Everyone Can See The Chairman of PAC At Work – Part 1

The extremely learned YB Datuk Nur Jazlan, Chairman of PAC and former Chairman of UDA
The extremely learned YB Datuk Nur Jazlan, Chairman of PAC and former Chairman of UDA


Public Accounts Committee (PAC) is a Select Committee set up by Parliament. Its role is to overseeing or scrutinising government expenditures approved by Parliament.  Generally, in the Westminster style of Parliament like ours, by convention PAC normally take up matters raised in the Auditor-General (AG)’s Report.


Continue reading “Now Everyone Can See The Chairman of PAC At Work – Part 1”

MAS AGM tomorrow: Why Tan Sri Azman Yahya of SCOMI is not seeking re-election

Tan Sri Mohamed Azman Yahya, who is a director of MAS for many years dated back to the WAU days and also a director of SCOMI and Symphony House Bhd. Why is he not up for re-election?

Updates @ 9:05 pm on 21-6-2012: Tan Sri Wan Azmi binWan Hamzah steps down from MAS Board during the AGM. The other aviation experts like Tan Sri Azman Yahya, Tan Sri Tan Boon Seng of IJM, Dato’ Rohanan binti Rozhan from ASTRO and David Lau Nai Pek are holding on to their directorship even though they could not show what were their contributions for the past TEN MONTHS. Tan Sri Wan Azmi;s said decision should be applauded and a very responsible acts.

One would have thought that Tan Sri Azman Yahya is a very busy man with so many companies to take care of especially SCOMI. The four chose to remain for reasons best known to themselves. Will do another posting soon about those remaining.


Updates @ 12:50 pm on 21-6-2012: The minority shareholders were questioning the competent and integrity of members of the Board of directors of MAS. They have also expressed their discontent with regards to their performance. From 10: 10 am this morning until now, the Board was still facing heavy criticisms from the shareholders. They could not even proceed to pass Resolution 1 to approve the Financial Statement let alone their Re-elections. The Board have been subjected to severe embarrassment. Yours truly has been informed that Tan Sri Azman Mokhtar’s most trusted crony, Rashdan, did not attend the AGM. 

Yours truly must apologies for not been able to attend because your truly question on the BinaFikir‘s consultancy fees and the 12 companies involved in the fuel hedging losses for RM3.3 billion for Parliament was No: 4 on the list. It was answered at 10: 30 am this morning. It will be posted here later.

After the MAS-AirAsia share swap, the brainchild of the little Napoleons in Khazanah Nasional Bhd, MAS will now hold its AGM on 21-6-2012 at 10:00 am, MAS Academy. Continue reading “MAS AGM tomorrow: Why Tan Sri Azman Yahya of SCOMI is not seeking re-election”

Rashdan sworn in Allah’s name that he didn’t upgrade his maid to First Class

The VOYAGE REPORT on the Deputy Group CEO of MAS during flight MH122 on 1-1-2012. Md Nor, AJ, Rozman Omar, CFO, and Shane Nollan, the Acting Commercial Director of MAS, care to comment?

Updates on 30-3-2012: Please read an interesting article by ABITW entitled “As long as MAS is here, no fear”.

Updates @ 11:30 pm on 28-3-2012: Parliament ended at about 10:00 pm just now. Will post what YB Datuk Awang Adik, the Deputy Minister of Finance, has replied in Parliament as soon as yours truly got a copy of the Handsard. Of course, he didn’t answer all the pertinent questions raised by several MPs especially “why was there a need for CCF to couple with share swap?” and what yours truly have asked in HERE & HERE during the policy Debate on the Royal Address. He was skirting around. Continue reading “Rashdan sworn in Allah’s name that he didn’t upgrade his maid to First Class”