Not sure if this is gonna be another full blown issue of LCCT and IJN’s scale. But it’s indeed something that everyone of us should ponder for the benefits of this beloved country. It was announced on Thursday that Cardholders who pay at least the minimum amount promptly over 12 consecutive months (Tier-1) will pay 13.5 per cent in annual interest from March 31, from the present 15 per cent. For those who pay promptly for at least 10 consecutive months (Tier-II), the interest rate will be 16 per cent, down from 17 per cent. For those who do not fall into both these categories (Tier-III), the interest rate will be 17.5 per cent, a minimal 0.5 per cent reduction from 18 per cent. The present minimum late payment fee of RM10, or 1 per cent of the total outstanding balance will also be reduced to RM5, and the RM100 maximum fee cut to RM75. On the surface this seems like a good move. Malaysia’s Association of Bankers head was quoted as saying that this will encourage prudent repayment habits and instil strong personal finance management.

But what happens if you have lost your jobs and can’t even pay your credit card bill? Would any reduction in interest rates even to zero percent interest help? I don’t think so and this is what is happening in the country. People are signing up for credit cards to tie them over during them the bad times and the number of people going unemployed is steadily rising. This will definitely increase the amount of Non-Performing Loans (NPL) incurred by the banks. So the focus should be on helping out the economy to stamp any possibility of job loss by helping out those companies who are struggling to stay afloat which are key to MALAYSIA. To control your debt, you are better off not using credit cards at all. Should you have outstanding debts on your credit card, do a balance transfer. RHB’s smartmove or Maybank’s programme is one of the lowest in the market for balance transfer. If you could not settle the credit in the short term, take out personal loan whose rates are around 10-12%, lower than your credit card rates (depending on your credit risk).

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Meanwhile Malaysia have dropped three rungs to 161st spot in FIFA soccer ranking — their second lowest ever — in the latest world rankings released by the International Football Federation (FIFA) yesterday.

According to FIFA’s website, Malaysia collected 104 points in February — minus 10 points from last month’s list — and are now only nine rungs ahead of their lowest ever standing at 170th last April. For the last two years, 2007 and 2008, the best position attained by Malaysia in the rankings was 151st in October 2008 after finishing as runners-up in the Merdeka Cup tournament. Malaysia’s highest-ever FIFA world rankings was 75th — back in 1993. Among the 10 South-east Asian nations, Malaysia remained in sixth place, behind Thailand (117th), Singapore (131st), Vietnam (135th), Indonesia (137th) and Myanmar (158th). The Philippines are at No. 164, Laos (171), Cambodia (179) and Brunei (183rd). What a bummer. It’s utter confusion in Malaysia’s football out there. Does it hurt to copy the Korean or Japanese system in producing the football stars? Too expensive? If banks can work together as a syndicate to finance expensive projects, why not having a syndicated sponsorships, consisting 15 sponsors?


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