Consumer interest groups and business associations also need to be proactive in updating and disseminating information on the availability of financing options such as guarantees, special schemes, and other forms of alternative financing. There are many micro enterprises that still rely on personal loans to finance business operations due to the lack of information and awareness on the existence of such financing options in the market. As a result, these enterprises are required to pay high interest rates to settle personal debts taken, while more cost-effective financing facilities remain underutilised. Business associations should strengthen their role by deepening understanding on the underlying causes before raising issues on access to funding. More often than not, the issues raised by business associations are channeled in the form of general complaints that have yet to be studied thoroughly or specifically. This compounds the difficulty of resolving the issues given 2/4  BIS central bankers' speeches  the lack of supporting details. In addition, business associations can act as an important point of reference in advising members on matters concerning efficiency and competitiveness, the use of technology and the adoption of electronic payments to achieve greater security and cost efficiencies. For consumers, priority should be placed on taking charge of their financial futures and ensuring that the financing options available are utilised responsibly. This can be achieved by conducting due diligence and research on the features of a potential financial product, which will lead to better understanding to facilitate informed decision-making.

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.