On the consumer end, examples of the common issues faced include – Misrepresentation or mis-selling of financial products, including incidences of product pushing; Disputes on interest rates, loan balances or settlement of insurance claims due to the lack of transparency and understanding in relation to the terms and conditions, or contract ‘fine 1/4  BIS central bankers' speeches  print’; The lack of capacity and poor discipline in financial management, resulting in high household indebtedness. The measures taken to overcome financial difficulties Beyond the banking industry, the Bank and other agencies such as the Securities Commission, the Malaysia Co-operative Societies Commission, Amanah Ikhtiar Malaysia and TEKUN will also continue to focus on enhancing the role of non-bank financing in addressing these issues. This includes the utilisation of factoring, leasing and market-based financing such as crowd-funding and peer to peer lending as a means of alternative financing for small businesses that do not have adequate financial records. From the aspect of consumer protection, the Bank continues to devote efforts towards strengthening trustworthy and user-friendly redress mechanisms through the Financial Ombudsman Scheme, in addition to strengthening policies on market conduct of financial institutions to ensure fair dealings to consumers. The Bank will also continue to accelerate initiatives on financial literacy to ensure that the financial advisory services provided by financial institutions, Laman Informasi Nasihat dan Khidmat (LINK) and the Credit Counselling and Debt Management Agency (AKPK) will continue to enhance the overall skills and knowledge in finance.

The inability of consumers to meet scheduled loan repayments can result in the bank taking actions to cancel or terminate the loan. Therefore, if consumers are faced with financial difficulties, please consult your financial institution immediately in order for alternative repayment arrangements to be discussed. Early identification can avoid the instigation of legal action. The Bank has established various channels and mechanisms to assist the public for this purpose. The public is advised to engage both LINK and AKPK for advice on this matter. Given the rising potential of technology in various aspects of our lives, consumers should leverage on this opportunity to simplify your daily banking activities. This includes strengthening awareness and closing information gaps on the dos and don’ts concerning the use of technology. With this in mind, the banking industry and other government agencies have held several roadshows to educate and assist the public and the business community. Do take the opportunity to attend such events. Current issues regarding the ringgit exchange rate I would like to take this opportunity today to address current issues regarding the ringgit exchange rate that has garnered considerable attention from fellow Malaysians. In 2016, the ringgit depreciated by 4.3% against the US dollar. In that year, the ringgit reached the lowest level of RM4.486 to the US dollar. The ringgit depreciation sparked some concern among Malaysians, to the point that it was seen as a reflection of a weakening Malaysian economy.