PM praises banks for helping SMEs, individuals

Prime Minister Anwar Ibrahim has lauded the banking industry for its dedication to broadening financial access, making it easier, more affordable, and responsible for individuals and micro, small, and medium enterprises (SMEs). These initiatives include the introduction of a Basic Credit Card, the abolition of the RM1 fee for ATM cash withdrawals, and targeted assistance for borrowers and SMEs impacted by economic pressures.

Anwar stated that these measures directly respond to the Madani Government's appeal for the financial sector to uphold values of compassion and humane economics in serving the public and small businesses. "In a situation where the public and SMEs face cost and cash flow pressures, financial institutions play a crucial role in helping their customers with prudent, agile, and humane solutions," he said.

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In a situation where the public and SMEs face cost and cash flow pressures, financial institutions play a crucial role in helping their customers with prudent, agile, and humane solutions

The Ministry of Finance explained that the Basic Credit Card will offer a simpler, more affordable, and inclusive credit option for citizens needing to manage daily cash flow responsibly. This product prioritizes lower financing rates compared to the lifestyle rewards and cash rebates typically offered by current credit card products. The financing rate for such cards will be capped at 14% annually, down from the current maximum of 18%.

Furthermore, since July 1, Malaysians can withdraw cash from any bank-operated ATM nationwide without incurring the RM1 fee. This initiative covers over 14,000 ATMs across the country, demonstrating the banking industry's commitment to ensuring basic financial services are more accessible to the public.

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This product prioritizes lower financing rates compared to the lifestyle rewards and cash rebates typically offered by current credit card products.