Consumers Association of Penang

Giving voice to the little people...since 1970

Developers Should Not Provide Housing Loans

The Consumers Association of Penang is strongly against the Urban Wellbeing, Housing and Local Government Ministry’s decision to allow developers to give out loans under the Money Lenders Act 1951 (Amendment ) 2011 . According to the Minister Tan Sri Noh Omar this is a win-win situation.

With all due respect, there is only one obvious winner from this scheme and that is the developer. After all Noh were also quoted as saying that “Our intention is to help developers sell the houses they have built”. Is the Government shifting the burden of unsold units to consumers?


A survey carried out by CAP past few days has shown an significant increase in the price of coriander leaves, daun bawang, asam jawa and garlic.

CAP found that the price  has increased from between 10% to 200% over the last one week.


The Consumers’ Association of Penang (CAP) strongly believes that consumers will benefit from the NFL just as employees benefit from the Social Security Organisation (SOCSO) which operates on the principle of NFL. If SOCSO has been overwhelming successful for more than four decades why can’t NFL.

CAP disagrees with former Bar Council chairman Kuthubul Zaman Bukhari’s statement that “any move to introduce the No Fault Liability (NFL) scheme will result in motorists having to pay a higher insurance premium”. His assertion is baseless.

No-fault insurance long overdue

CAP congratulates the Attorney-General Tan Sri Abdul Gani Patail for proposing that the no-fault liability scheme be implemented.

Such a scheme is long overdue. We had as far back as the late 1970s and in the early 1990s, called for the introduction of some kind of no-fault motor insurance to benefit consumers. The idea behind no-fault insurance is to get accident victims compensated as quickly as possible.

Household debt in Malaysia – Is it sustainable?

altAccording to the Bank Negara’s Annual Report 2010, Malaysia’s household debt at end of 2010 was RM 581 billion or 76% of GDP (Gross Domestic Product). The Bank claimed that the household debt is still manageable because of income growth, high levels of savings and favourable employment opportunities.

However, if we look at household debt from the point of disposable income then the picture painted is worrisome because it reveals that households are spending about half of their income to pay off their debts.