Financial literacy paying off for borrowers; Better protection with the Consumer Credit Act

PETALING JAYA: Financial literacy efforts are bearing fruit, with ordinary Malaysians describing how professional guidance kept them from falling into hidden debt traps.

For 20-year-old student Zharif Azhar, the lure of freebies nearly cost him financial instability.

“I almost signed up for multiple credit cards because of the free gifts they offered. Luckily, I attended a financial literacy session at university where planners explained the long-term costs of debt. 

“That talk opened my eyes, and now I budget carefully instead of rushing into commitments I can’t handle,” he said in an interview.

Housewife Izzati Hafnan, 46, said her biggest concern was her teenage daughter’s use of buy-now-pay-later schemes.

“When my daughter started using buy-now-pay-later plans for her shopping, I was worried she might get carried away. 

“I spoke to a financial planner who explained how easy it is for small purchases to pile up into big debts. 

“It gave me the confidence to set limits at home, and I now feel more at ease knowing she understands the risk.”

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For trader Nani Surya, 41, professional advice was a turning point in avoiding costly mistakes.

“Running a small shop, I used to think taking more loans was the only way to keep things moving. 

“But after sitting down with Credit Counselling and Debt Management Agency (AKPK) for financial advice, I realised not every loan is worth it. 

“They showed me how to manage cash flow properly, and I avoided signing a loan that would have put my shop at risk,” she said.

Meanwhile, 23-year-old delivery rider Anas Safwan relied on strict self-discipline when faced with unstable income and mounting debt.

“As a rider, my income goes up and down every week, so when I had to pay off my motorbike loan and a few personal debts, I just relied on my self-discipline. 

“I keep a notebook to track every sen, cut down on eating out, and force myself to set aside cash before spending on anything else. 

“It was stressful without guidance, but I didn’t want to owe anyone more than I already did,” he shared.

According to AKPK’s Corporate Communications head, Roha-nizam Talib, efforts are expanding, particularly on financial literacy, under the newly passed Consumer Credit Act (CCA).

“AKPK will be one of the partners of the Consumer Credit Commission to help regulate credit providers so that they comply with requirements. 

“Once the CCA is fully enforced, providers will be required to assess more thoroughly before offering facilities, making it easier for us to assist customers.”

She added that AKPK has identified significant gaps in financial literacy, particularly among youths drawn to buy-now-pay-later spending for gadgets, coffee and even daily necessities.

“Our education programmes aim to reach as many Malaysians as possible, especially young people tied to the ‘fear of missing out’ (FOMO) and ‘you only live once’ (YOLO) culture. 

“The goal is to ensure they understand the purpose of borrowing, their ability to repay and whether their income is sufficient to cover debt and daily expenses,” she said.

Since 2006, AKPK has provided comprehensive financial counselling, a mandate that will continue and expand with the CCA, Rohanizam added.

Related stories:

• Better protection with the Consumer Credit Act

‘Malaysian edu can do better’

 

This visual is human-created, AI-aided

Positioning Malaysia as a hub of excellence in both innovation-driven and non-science, technology, engineering and mathematics (STEM) fields is crucial to maintaining Kuala Lumpur’s edge as a global student city, industry players say.

While placing 12th in the latest Quacquarelli Symonds (QS) Best Student Cities Rankings – the country’s best showing since participating in 2016 – is cause for celebration, Malaysia has the potential to do even better.

Looking ahead, Malaysian Association of Private Colleges and Universities (Mapcu) president Datuk Parmjit Singh said institutions should shift away from generic qualifications towards growth verticals such as artificial intelligence (AI), fintech, data science, analytics, cybersecurity and integrated circuit design.

National Association of Private Educational Institutions (Napei) president Datuk Lau Wai Cheng, meanwhile, emphasised that while STEM is critical, non-STEM areas should not be overlooked.

“We have seen institutions establish advisory boards with industry leaders, embed internships and work placements into degree programmes, and even co-develop courses with employers, especially in areas like design, communications and hospitality.

“These partnerships go beyond appearances; they deliver real-world skills, meaningful job placements, and industry-ready graduates.

“These partnerships go beyond appearances; they deliver real-world skills, meaningful job placements, and industry-ready graduates.

“That said, there is still room to strengthen the alignment between non-STEM programmes and the demands of fast-evolving job markets, especially in emerging areas like content creation, digital marketing, social innovation and careers related to environmental, social and governance initiatives,” she said, adding that to remain competitive, institutions must ensure their programmes stay relevant by embedding practical experiences like internships while equipping students with both technical and soft skills.

Lau also stressed that continuous engagement with industry at local, regional and international levels is vital to keeping curricula aligned with market demands and producing graduates who remain in high demand.

Malaysia, said Parmjit, already has what it takes to get ahead: English-medium instruction, internationally benchmarked programmes, competitive tuition fees and living costs, and continuous investment in modern campuses and resources to attract even more global learners.

But these strengths must now be strongly showcased in the global student recruitment arena, he asserted.

“Education Malaysia Global Services can champion Malaysia’s private universities abroad.

“The agency is best placed to highlight institutions that have invested heavily in providing attractive learning and living environments, alongside high-quality education and excellent student experiences,” he said.

Road to 2030

Parmjit noted that the key to staying competitive lies in internationalisation, mobility and innovation.

“Malaysian private institutions should intensify international mobility and recognition, as well as forge more transnational education (TNE) partnerships with reputed universities,” he said, adding that such efforts would broaden the range of unique programmes on offer and attract more international students.

He also called for greater flexibility around student work rights.

“It would be a big boost if post-study work schemes or visa flexibility were expanded to retain talented graduates. This will greatly enhance students’ interest in coming to Malaysia to study.

“This would help students defray their living expenses, and the extra income earned would in turn be spent here in Malaysia, especially as students tend to travel beyond KL during their holidays and experience the best of what Malaysian tourism has to offer,” he added.

For Parmjit, the latest QS rankings validate years of investment by private institutions in creating globally relevant offerings.

“The private sector is well poised and always prepared to capitalise on this recognition.

“Many member institutions already have high international student proportions and employ robust admission channels,” he said.

Lau

Lau, however, stressed that while the QS recognition is important, rankings alone do not change global perceptions.

“We need to amplify this narrative through consistent communication, student testimonials and clear evidence of graduate success,” she said, while stressing the need to ensure momentum extends beyond KL.

“We should develop other cities – such as Penang, Johor Baru and Kuching – into student-friendly education hubs.

“This involves enhancing infrastructure, industry linkages, and student services,” she said, adding that with the right support and collaboration, KL’s success can be replicated and more Malaysian cities can be positioned as attractive destinations for international students.

She also said achieving the government’s 2030 goal of making Malaysia a regional and global education hub will depend on expanding the nation’s appeal and diversifying what it offers.

“With targeted investment and collaborative effort, Malaysia can not only sustain KL’s standing but also elevate other cities as attractive destinations for global learners,” she said.

Mapcu, said Parmjit, continuously plays a proactive role in policy advocacy, sector coordination and international branding.

“We work with the Higher Education Ministry and regulators on policies related to recruitment, quality assurance and graduate work rights; we help institutions benchmark and collaborate; and we amplify Malaysia’s position abroad through participation in global education fairs.

“Mapcu is fully committed to working hand in hand with government and institutions to ensure that KL – and by extension, Malaysia – capitalises on its inherent strengths and potential to achieve its goal of being a leading regional and global education hub by 2030,” he said.

 

In love with ‘second home’

INTERNATIONAL students from UCSI University share what it’s like to study in KL, which they fondly call their “second home”.

Jennifer

I started my tertiary studies a year ago. When I arrived in KL, my first impression was that the country had nice food and a vibrant culture. But as I immersed myself more in the city, I fell in love with how developed its infrastructure was. As a student, this is the kind of place I was looking for. It is really convenient for me to get to university or head to the city centre to hang out during the weekends because the public transport is efficient and everything is affordable. I’m currently pursuing a mass communication degree, and there are many opportunities here. I love that many companies don’t shy away from hiring international students — it’s a great chance for me to broaden my horizons. My experience studying here has also given me valuable exposure that supports my future. KL has huge potential to rise in the QS rankings, with how integrated and safe the city is for students to explore on their own. It is one of the best places to discover who you are, to learn, and to build your career. -- Jennifer Janis, 23, Indonesia

Suyeon

It has been 15 years since I first came to Malaysia. What began as a decision made by my parents, who saw the country’s potential for growth, turned into a long-term journey of learning, adapting and growing. Moving to a different country at a young age had its challenges. But over time, I came to truly appreciate what makes Malaysia such a unique and welcoming place to live and study in. Malaysia’s multilingual environment is another strength I deeply value. English, Bahasa Malaysia and Mandarin are commonly spoken. As a student, this allows me to naturally broaden my linguistic skills and cultural understanding. It’s an experience that has prepared me well for global communication and cross-cultural collaboration — skills that are increasingly important in today’s world. Varsity life has also played a meaningful role in my growth — the student community is so open and engaging. As I prepare to graduate and step into the next chapter of my life, I’m grateful for the years I’ve spent in Malaysia. The lessons I’ve learnt, the people I’ve met, and the perspectives I’ve gained will stay with me — both as a person and as a qualified professional.-- Suyeon Huh,

Room for improvement

The Star https://www.thestar.com.my › education › 2025/09/07

12 hours ago — Asian cities rise in standings. The Quacquarelli Symonds (QS) Best Student Cities Rankings 2026, which feature 150 cities and districts, also ...

Room for improvement

Related stories:

• Room for improvement 
• KL shines in graduate employability

 24, South Korea

Syed

My friends and I were just talking about how it’s such a blessing to be studying in KL. From the moment you arrive at the airport, there’s a separate counter for international students — it makes you feel seen and welcomed. From the rich culture that allows students of any nationality to feel at home and the amazing places to visit, to the campus life that makes you feel part of a close-knit community - there’s so much KL gets right that many other places don’t. One important factor is that most international students feel safe in KL, no matter what is going on everywhere else in the world. I’ve seen firsthand how my varsity goes out of its way to support international students, especially those whose home countries are experiencing war and unrest. Initiatives like the International Buddy Programme and events like International Cultural Week really help us feel welcomed, safe and comfortable. --Syed Wajeeh Hassan, 20, Pakistan

Winning from the vernacular schools

 

Two budding young scientists hold great promise for malaysia. they were among five winners, but what makes them special is that they are proof the vernacular school system works, too.

DORAIRAJ NADASON newsdesk @thestar.com.my

IT’S an age-old argument in this country. Are our vernacular schools good? Or is the national school system still the best? 

Vernacular schools do have plenty of critics, with many claiming they add to racial polarisation. These people want them closed, saying a single school system should be introduced.

Despite that, vernacular schools are getting more popular with Chinese schools especially attracting more students, primarily – and ironically – Malay pupils.

It is indeed an old issue. It goes back some 200 years when the vernacular school system first began.

The first recorded Tamil school was within Penang Free School in 1816. The first Chinese school started three years later – also in Penang – in 1819. Two centuries later, they remain relevant.

We could see that last Friday when five people – all outstanding in academics – were awarded the Merdeka Award Grant for International Attachment. Two of them were from vernacular schools.

G. Keisheni, from Penang, is a budding scientist – almost literally; she is working with flower buds.

The 30-year-old, probably the first Malaysian Indian woman to get the award, has found a new use for the bright blue butterfly pea, a flower often used to make tea.

But she uses them on microneedles, which are already a thing in the medical field, especially in beauty treatment. They allow medicine to be injected into the body via patches.

It’s painless and effective – no sharp needles, and no syringes or tubes.

The butterfly pea is often drunk as a tea, and is believed to help improve skin and hair health, and may even support cardiac wellness or help with blood sugar regulation.

Keisheni, however, found that if microneedles are tipped with butterfly pea, they can sense and signal any problem in the transdermal area and quickly alert health personnel.

Her findings allow for easy administration of medicine with any adverse reactions or allergies almost immediately detected so quick follow-up treatment can be done.

Not bad at all for someone who had her early education in SJKT Ramakrishna, a Tamil school housed in the compounds of the Ramakrishna Ashrama, the oldest Indian orphanage in Malaysia. It was started way back in 1938.

Keisheni had her secondary education in St George’s Girls School nearby and did her degree in biological sciences in Universiti Malaysia Pahang, before her master’s and PHD in the same university.

Her master’s thesis was on edible films, using food waste to replace plastic. She actually found ways in which you can eat the wrapping around your apple!

Keisheni says it was a bit tough coming from a Tamil school because many around her saw her beginnings as inferior, but she was not one to give up.

Her biggest difficulty was “a limitation of opportunities”, but she still showed that she was made of sterner stuff.

Being the first Indian woman to have been in line for the award was also tough. “There was no role model, no one to look to for guidance and assistance,” she says.

But she did get help from her lecturers, Assoc Profs Dr Wan Rafizah Wan Abdullah and Dr Vigneswari Sevakumaran. If Keisheni is impressive, Calvin Shee Yin Ming is almost jaw-dropping. This lad is just 23 and will turn 24 on Tuesday, and he has not even had his convocation yet, but already he has won the award as a graduate in microbiology and molecular genetics.

He also founded and leads an NGO, and has projects with a major pharmacy in the country.

He says he was “a naughty kid” who didn’t quite concentrate on his studies while at SJKC Cheng Sui (1) and SMK Datuk Bentara Luar in Batu Pahat, Johor. However, the epiphany came when he was studying for his STPM.

“I studied for 13 hours a day, and I was interested in physics and quantum physics.”

How does one study 13 hours in a 24-hour day?

“I was very disciplined,” he says. “The competitive Chinese school experience shaped my habits – things like sticking to routines, being meticulous in study, making sense of theories and pressure resistance.”

However, he says the Chinese school education was not a big factor in his later studies. Like Keisheni, his research also centres on a wild-growing plant – the carnivorous pitcher plant, which can literally eat insects that have exoskeletons made of chitin.

Those insects carry some bad bacteria, but these plants have their own bacteria that help in dissolving chitin. He hopes to study how the plants overcome the bad bacteria and come up with an antibiotic to heal certain ailments.

But he has another scary story to tell. Bacteria can become resistant to any antibiotics in 10 generations. Sounds like a long time, right? Wrong.

A bacterial generation is something like 20 human minutes. So, in just 200 minutes, or three and a half hours, an antibiotic becomes useless. So, what do we do?

Enter Calvin’s NGO. It’s called United for Global Antimicrobial Stewardship.

The idea is to create awareness of the short-term usefulness of antibiotics, or antimicrobial resistance (AMR), and ensure people do not misuse them.

It advocates the regulation of antibiotics use as well while also ensuring that expired medicine does not get into our waste and water streams. To that end, they are working with a local pharmaceutical firm to encourage patients to return their unused medicines.

And they have some “crafty” methods, like “pills art” and batik painting competitions with pills and capsules as motifs.

It helps. People learn what not to do with their pills, and our healthcare system has a chance of staying healthy.

Calvin will be off to Paris later this year to join the French National Centre for Scientific Research in Versailles, where he could work with Denis Faure, a renowned expert in plant physiology.

Keisheni will be off to Ireland to study the use of plants like the butterfly pea in microneedles for better treatment of wounds and injection of medicines.

For both of them, though, the seeds of their growth came from vernacular schools. With minds like these as ambassadors, it looks like those schools are here to stay.

Cyber scams rising sharply; Scam victims face trauma of losses

Home Ministry ramps up efforts as losses hit rm1.12bil

ONLINE scams in Malaysia have caused a staggering Rm1.12bil in financial losses in just the first half of 2025 alone, says the Home Ministry.

It said that the government would begin intensifying its efforts and curb online scam losses in the country, which include strengthening the National Scam Response Centre (NSRC), in response to the growing scam cases.

The ministry said this would involve the creation of new positions involving various schemes.

“Prime Minister Datuk Seri Anwar Ibrahim has also agreed for the NSRC to be placed under the direct supervision of the Home Ministry. It has also been decided that it will be led by the police force,” the Home Ministry said in a parliamentary written

“Prime Minister Datuk Seri Anwar Ibrahim has also agreed for the NSRC to be placed under the direct supervision of the Home Ministry.” Home Ministry

reply to R. Yuneswaran (Phsegamat) on the amount of money lost by Malaysians due to online scams and the steps being taken to address the issue.

The ministry also said it is studying the feasibility of drafting a Cybercrime Bill as part of its efforts to combat cybercrimes in the country. It added that its Semakmule portal, which enables the public to check bank account numbers, phone numbers and companies used by scammers, currently has 265,869 bank accounts, 211,265 phone numbers, and 12,724 company names recorded.

On Aug 5, the Digital Ministry said online scam financial losses in 2024 reached a worrying Rm1.58bil, a 2.53% increase from the year prior.

It was reported earlier that to cope with an average of 500 scamrelated calls per day, the government has approved an additional 139 permanent staff for the NSRC.

In the interim, 40 Commercial Crime Investigation Department personnel have been deployed to assist operations.

Currently, the NSRC is supported by personnel from the police, Bank Negara, calling agents appointed by the central bank and bank officers.

Home Minister Datuk Seri Saifuddin Nasution Ismail said the NSRC’S operations will be relocated to Cyberjaya by early September to allow all agencies to work under one roof.

The Star

https://www.thestar.com.my › nation › 2025/08/15 › sc...

Scam victims face trauma of losses

Scam victims face trauma of losses

https://www.thestar.com.my/news/nation/2025/08/15/scam-victims-face-trauma-of-losses

M'sians whose money vanished also have sleepless nights and trust issues. PETALING JAYA: At 5am on April 1, 2023, Lawrence was jolted awake .

US revises tariff rate to 19%

technop1668

 However, nation must urgently diversify its export destinations

PETALING JAYA: Malaysia’s revised tariff rate of 19% on exports to the United States offers a temporary competitive edge in the region but underscores the urgency for export diversification amid signs of growing US protectionism, economists warn.

Prof Emeritus Dr Barjoyai Bardai said the revised rate, down from 25% previously, positions Malaysia on par with neighbou­ring countries such as Thailand, Indonesia, Cambodia and the Philippines.

ALSO READ: Malaysian industries can breathe easier now

He said the rate is still more favourable than those imposed on Myanmar (40%), Vietnam (20%) and Taiwan (20%).

“We seem to be able to compete with our neighbouring countries. But we are far behind Singapore at 10%, as well as Japan and South Korea at 15%.

“With India at 25%, we are in a better position,” he said when contacted. What we really want to see is that the tariff imposed on Malaysia is as low or better than that of countries that are our competitors because we are exporting to the United States.

“So, if those countries have equal or higher tariffs than us, then our ability to compete remains intact,” he added.

However, he said that certain Malaysian exports may be vulnerable, especially low-­margin products such as solar panels, and electrical and electronic goods.

On the trade balance with the US, he said it depends on whether Malaysian imports from the US increase significantly, especially luxury goods, following the government’s decision to scrap the luxury tax.

“Although the luxury tax has been included in the expanded SST, the rate is still low,” he added.

He said Malaysia must urgently diversify its export destinations, as the US moves towards a more self-sufficient economy.

Barjoyai said semiconductors should be directed to countries with growing demand, such as China, India and Europe.

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For other items like solar panels, he said Malaysia should consider Latin America, Canada and Europe.

“There are still many untapped markets. In the long run, the United States will become a domestic-driven economy where they will seek to reduce imports.

“Today, they are already about 80% self-sustaining,” he added.

Echoing similar concerns, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the tariff adjustment signals that the United States remains open to dialogue, but the economic implications for Malaysia remain.

“As a result of recent discussions, the previously imposed retaliatory tariffs of 25% have now been reduced to 19%.

“Consequently, the negative impact on Malaysia’s economy is expected to be slightly mitigated.

“In this regard, Bank Negara has revised its GDP forecast for 2025 to a range of 4.0% to 4.8%, down from the earlier projection of 4.5% to 5.5%,” he said.

Afzanizam also highlighted the potential global impact of US ta­riffs.

“The 19% import tariff is expected to impact American consumers’ purchasing power.

“This may, in turn, dampen economic momentum in the US, which is the world’s largest econo­my. It poses a potential risk to glo­bal economic growth in the coming years,” Afzanizam said.

He also called for a balanced approach to foreign relations and economic strategy.

“It is crucial to preserve strong bilateral ties with the United States, while simultaneously exploring new opportunities with countries in Europe, the BRICS bloc, and strengthening economic and diplomatic cooperation within Asean.

“At the same time, efforts to boost productivity, build capacity and enhance economic resilience must be intensified to safeguard Malaysia’s economic sovereignty.

“These measures will reinforce investor and business confidence, underpinned by pragmatic policies and the government’s proactive response to emerging challenges,” he added.

Centre for Market Education chief executive officer Carmelo Ferlito, meanwhile, said the tariff revision reflects a political strategy rather than a pure economic measure.

“The reciprocal tariff on Malay­sia to 19% is the proof of what I have mentioned earlier,” he said, adding that US President Donald Trump was not interested in ta­riffs per se, but to reopen negotiating tables.

He said this is to show that the United States is the biggest consumer in the world and force countries to get closer to the United States as well as grant commercial facilitations.

Ferlito criticised the use of ta­riffs as a policy tool, arguing that they hurt both consumers and workers.

“Tariffs are bad, not just for Malaysia, but for the world,” he said, adding that ultimately, ta­riffs reduce trade opportunities.

“This means less choice for consumers, but also job losses, on both sides,” he added.

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• US tariff cut signals global trust in Malaysia, says Nga
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