Summary
- Basic credit card interest rates capped at 14% annually.
- Three banks have begun offering the facility.
- Government encourages more banks to participate.
KUALA LUMPUR, October 13 — Malaysian banks have begun introducing basic credit cards with annual interest rates capped at 14%, offering consumers an alternative to credit cards with higher financing charges.
Prime Minister and Finance Minister Anwar Ibrahim announced the initiative during the Budget 2027 presentation, highlighting the participation of Alliance Bank, Maybank and CIMB in offering the facility.
The government aims to reduce borrowing costs for credit card users, particularly those seeking more affordable access to credit facilities.
Anwar also encouraged other financial institutions to introduce similar products to expand access to lower-interest credit cards across Malaysia.
However, the Budget speech does not specify the eligibility requirements, credit limits, annual fees or whether existing cardholders can convert their current cards to the new basic credit card products.
