85% of vehicles sold in Malaysia are financed or leased, with the remainder of the buyers paying cash.
The strict Auto Financing approval policy by Bank Negara Malaysia will continue to affect total industry volume in 2017. This will have a direct impact on the purchase of vehicles in the market and would affect buyers as they may find it difficult to secure loans.
Some of these buyers are genuine. Just because of the policy set by the central bank had affected their eligibility for the auto financing facility.
In view of that, KAPB had taken this opportunity to invest in Malaysia auto financing market to cater for these group of people. With highly experience credit professionals, we had strengthened the financing structure to manage the risk of non-performing loan.
Since KAPB already venture in the automotive market, we believe that the auto financing will contribute to additional revenue in this sector.