27/03/2025

THURSDAY | MAR 27, 2025

3

Trappings of Buy Now, Pay Later schemes

M’sian products make presence in UK KUALA LUMPUR: The recent launch of the Halal Oriental Market Malaysia in Queensway, London, marks a significant success for Malaysian-made products. The initiative is the result of a strategic collaboration between the Federal Agricultural Marketing Authority (Fama), the Agricultural Representative Office in The Hague and 3Bumi Trading Sdn Bhd. The market is a key strategic sales hub for the Muslim community and Asian food enthusiasts, Bernama reported. M’sia’s Deputy High Commissioner in London Mohiuddin Ghazali said in a statement: “The hub is expected to introduce more Malaysian products to the United Kingdom (UK) and reaffirms our commitment to diversify Malaysian brands in the UK market.” The launch last week was attended by representatives from Fama, the Agricultural Representative Office in The Hague, industry players, strategic partners and various agency representatives in London. According to the statement, the market offers a range of high-quality halal products. Fama deputy director-general Faisal Iswandi Ismail expressed confidence that this would pave the way for greater prospects for Malaysian products in Europe and the UK, particularly in the halal food and premium product segments which cater to international consumer preferences. First Secretary at the Agricultural Representative Office in The Hague Muna Tasu commended the initiative as a strategic step that will bring long-term benefits to the Malaysian economy. Extra sessions for Rahmah Madani sales PUTRAJAYA: The Domestic Trade and Cost of Living Ministry will increase sessions under the Aidilfitri Rahmah Madani Sale Programme in the final week of Ramadan, said Minister Datuk Armizan Mohd Ali. He said initially there were 723 sessions nationwide between March 17 and March 30. “We will hold additional sessions to support those in need by offering essential goods under the stock keeping unit at discounts from 10 to 30 per cent compared with market prices. “The response has been encouraging, which is why we are intensifying efforts to organise as many sessions as possible, particularly in targeted communities,” he told reporters after the ministry’s monthly assembly and Ihya Ramadan event on Tuesday. He said the programme aims to alleviate the financial burden of the public. The locations and dates of the sessions can be accessed at https://www.kpdn.gov.my/ms/jualan-rahmah. Armizan also said Prime Minister Datuk Seri Anwar Ibrahim is expected to visit selected locations today to monitor the pricing of goods on sale. – Bernama Sunday holiday for Terengganu, Kelantan KUALA TERENGGANU: The Terengganu government has announced that this Sunday will be an occasional holiday in conjunction with Hari Raya Aidilfitri, Bernama reported. “The state government has agreed to designate Sunday, March 30, an occasional holiday or public holiday in celebration of Aidilfitri. “Make the most of this time to be with your loved ones. Selamat Hari Raya Aidilfitri, Maaf Zahir dan Batin,” Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said in a statement on his Facebook page. The Kelantan government also declared Sunday an occasional holiday. Menteri Besar Datuk Mohd Nassuruddin Daud announced it after the weekly State Executive Council meeting at Kota Darulnaim on Tuesday. He said the holiday would provide flexibility for the people, particularly those returning from other states, to travel home earlier and reduce traffic congestion a day before the festivities. The Kelantan government has also announced a special Aidilfitri assistance of RM500 for civil servants.

o Expert warns of growing debt risk, especially among lower-income households

Ű BY DEEPALAKSHMI MANICKAM newsdesk@thesundaily.com

PETALING JAYA: The rising popularity of Buy Now, Pay Later (BNPL) schemes in Malaysia is raising concerns over financial stability, particularly among lower-income households. Centre for Market Education CEO Dr Carmelo Ferlito, who is also a visiting research fellow at Bank Negara Malaysia, said the rapid adoption to BNPL schemes is its appeal of allowing consumers to enjoy immediate gratification without the financial burden. “The schemes are attractive because they offer the pleasure of consumption without the immediate burden of payment, at least for a certain amount of time.” However, Ferlito warned that missed payments could lead to severe financial consequences. He said those who default on payments may face further economic hardship and difficulty in securing loans, such as home financing. “The immediate impact depends on the terms agreed with the scheme provider. Generally, individuals face greater financial challenges and may struggle to access essential loans.” One of the key concerns, he pointed out, is the absence of stringent credit checks in BNPL applications, unlike traditional credit cards. “It creates a dangerous mentality linked with deferred payments, putting lower-income households at risk of financial instability.” Previously, Bank Muamalat Malaysia Berhad chief economist Dr Mohd Afzanizam Abdul Rashid was reported to have said that Malaysians spent an average of RM1,735 per month, or RM57.83 per day, on e-commerce platforms last year. Data from the Department of Statistics Malaysia showed that expenditure on e-commerce platforms grew by 15.4% annually, with Malaysians spending RM707.9 billion on online shopping in 2024. The rapid increase in digital spending reflects the growing reliance on alternative payment methods. Ferlito emphasised the importance of enhancing financial literacy to help individuals make informed financial decisions. “Education is the best way to manage BNPL risks. Regulation isn’t the answer. Banks are heavily regulated, yet crises still happen.” With Malaysia’s household debt-to-GDP

Ferlito said BNPL schemes are attractive because they offer payment for products in small instalments, but defaulting on payments could lead to severe financial consequences. – MASRY CHE ANI/THESUN

must act responsibly. With more payment and financing options available, it is important for households and individuals to monitor their cash flow, keeping a close eye on expenditures.” Ferlito also urged consumers to balance convenience with financial awareness to avoid long-term financial pitfalls. Consumer Credit Oversight Board Task Force head and Bank Negara Malaysia assistant governor Abu Hassan Alshari Yahaya recently said 69% of users rely on BNPL as their sole source of financing. He also said 73% are from the B40 group, earning less than RM5,000 monthly, while 21% are from the M40 group, earning between RM5,000 and RM10,000 a month.

Badrul Hisham also said there is a growing trend of parents who alter the spelling of traditional names to add a modern touch, with Amir often spelled as Ameer and Zahra as Zara. Department records show that the longest registered name contains 15 words, while the shortest name is just two letters, he said. While creativity is welcomed, he advised parents to consult the department if they are uncertain about name choices to avoid complications during registration. Under Section 16 of the Births and Deaths Registration Act 1957 (Act 299) for Peninsular Malaysia, the Registrar-General has the authority to accept or reject a name. Badrul Hisham said the department has also ratio already at worrying levels, Ferlito warned that BNPL could further contribute to overspending and debt accumulation. “Yes, it is a growing concern. With household debt already at an extremely high level relative to GDP, promoting responsible spending is essential.” Ferlito said while BNPL providers offer zero-interest transactions, aggressive market strategies could drive weaker players out of the industry once the boom subsides. Despite the risks, he acknowledged that BNPL can offer financial flexibility, especially during crises. However, he stressed the need for responsible usage. “We shouldn’t ban BNPL, but consumers

Muhammad, Abdul, Nur, Siti among favourite baby names PUTRAJAYA: The names Muhammad, Abdul, Nur and Siti continue to top baby name charts in Malaysia, reflecting deep cultural roots and Islamic identity, according to the National Registration Department. Aisyah, Maryam and Rayyan remain popular for their beautiful meanings, he added. introduced official guidelines for naming children, which outline three categories, namely objectionable names (such as ranks and titles), undesirable names and names linked to ancestry.

“Titles such as Tan Sri, Datuk, Tun, Haji, Nabi, Governor, Dr and Mahaguru are prohibited.” He said parents are also advised against naming children after animals, fruits, vegetables or objects, and abbreviations such as D, Mohd, Abd or M are not permitted. For hereditary titles such as Tengku, Megat and Puteri, the department will assess whether the title is genuinely inherited before approving its use. Non-Muslim families are also required to adhere to the guidelines, which prohibit names that imply divinity, he added. – Bernama

Department director-general Badrul Hisham Alias said the names are chosen for their strong ties to Islamic identity and Malay heritage. “Names like Muhammad, Abdul, Nur and Siti are commonly followed by a second name. Parents typically draw inspiration from books on baby names, parenting websites, the Quran and hadiths, or refer to language experts before making their choice.” He said parents today tend to favour names that are not only easy to pronounce and remember but also carry positive meanings. Islamic and Arabic-inspired names such as