Consumer Finance in Malaysia
Euromonitor International's Consumer Finance in Malaysia report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 147 | Publication date: Jun 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Credit cards grow steadily, debit cards rising in popularity
Official statistics show that while cash is still king in Malaysia, credit cards have been gaining importance as an alternative payment mechanism. With a high banked population, an average of two to three credit cards per addressable population and wide merchant acceptance of credit cards, consumers are increasingly using credit cards to pay for high value retail purchases in lieu of cash. Smaller retail transactions remain the domain of cash. While debit cards are not new in Malaysia, with Bankcards offering debit card functionality, low merchant acceptance and consumer awareness have hampered growth in this area. The increasing prevalence, however, of Visa and MasterCard debit cards is attracting greater usage in what remains a nascent field.
Interest in general purpose pre-paid cards intensifies
With a highly competitive credit card environment, banks and non-banking financial companies without high market share in other financial cards have been looking at the pre-paid cards market in an attempt to capture market share and increase their brand awareness. Issuers already with significant exposure to the credit cards business have been wary of pre-paid cards as they are loathe to risk cannibalising their hefty credit card profits. 2007 saw a proliferation of new general purpose pre-paid cards targeted at hitherto untapped customer niches characterised by their ineligibility to apply for other financial cards. Visit Malaysia Year 2007 represented an opportunity for Bank Islam to introduce a pre-paid MasterCard card targeted at tourists who look for alternatives to cash. A new non-banking financial company, Tune Money Sdn Bhd, emerged in 2007 with pre-paid card products that target consumers, who are concerned about their ability to manage their debt, and youths of 15-17 years old. There remain significant opportunities to reach this unbanked population, and continuing interest from issuers can win dividends and increase overall interest in card payments.
Increasing concerns on security especially for internet transactions
Malaysia was the first country to achieve complete EMV compliance in 2005 and implement chip-based smart cards to reduce the high rate of counterfeit fraud and alleviate consumer concerns about card security. These measures have considerably reduced the rate of counterfeit fraud and have contributed to the ongoing popularity of financial cards as payment methods. The rise in internet penetration and the concomitant increase in e-commerce and m-commerce and with the government's large investment in upgrading the country's broadband network to increase broadband penetration, card not present (CNP) fraud is on the rise and will continue to rise unless strict measures are taken to curb fraud. Bank Negara Malaysia remains committed to increasing electronic payments and has enforced the use of the CVV in processing credit cards transacted online and is in the process of studying measures to mandate the use of two factor authentication methods to further increase confidence in security.
E-commerce becomes more significant
Banks and financial card issuers have been actively increasing their internet banking capabilities and partnerships with e-commerce sites recognising the growing significance of online transactions. Maybank (Malayan Banking Bhd) and CIMB Bank, for example, have increased the range of services that can be transacted online over their internet banking portals. Tune Money, a new non-banking financial company, was launched in 2007 as an internet-based “no frills” financial service provider with a general purpose pre-paid card suitable for internet transactions. AEON Credit Service, a subsidiary of the AEON retail and financial conglomerate, has also partnered with RedHot Media, an e-commerce gallery, in an effort to inexpensively reach a wide range of 600,000 customers.
Table of contents
CONSUMER FINANCE IN MALAYSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Credit cards grow steadily, debit cards rising in popularity
Interest in general purpose pre-paid cards intensifies
Increasing concerns on security especially for internet transactions
E-commerce becomes more significant
KEY TRENDS AND DEVELOPMENTS
Industry expected to overcome economic challenges in the short term
Financial cards remain popular despite rising fraud rates
Reaching new customer niches
Highly competitive landscape for credit cards; high potential for other card products
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
CONSUMER LENDING IN MALAYSIA
EXECUTIVE SUMMARY
Weaker economic growth points to lower personal expenditure
Central bank to address increasing consumer preference for debt
Diverse customer base served by different lenders
Growth in consumer debt seen as sustainable
KEY TRENDS AND DEVELOPMENTS
Decreasing consumer income and spending to dampen demand for loans
Urbanization in Malaysia increasing demand for loans
Auto loans to decrease driven by softening vehicle sales
Credit cards substituting for durables loans
Change in Employees Provident Fund regulations to boost home loans
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - MALAYSIA
AEON CREDIT SERVICE (M) BERHAD - FINANCIAL CARDS AND PAYMENTS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Aeon Credit Service (M) Berhad: Key Facts
Summary 3 Aeon Credit Service (M) Berhad: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
CIMB BANK BHD - FINANCIAL CARDS AND PAYMENTS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 CIMB Bank Bhd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 CIMB Bank Bhd: Competitive Position 2007
MALAYAN BANKING BHD - FINANCIAL CARDS AND PAYMENTS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Malayan Banking Berhad: Key Facts
Summary 7 Malayan Banking Berhad: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 Malayan Banking Berhad: Competitive Position 2007
TOUCH 'N GO SDN BHD - FINANCIAL CARDS AND PAYMENTS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Touch 'n Go Sdn Bhd: Key Facts
Summary 10 Touch 'n Go Sdn Bhd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Touch 'n Go Sdn Bhd: Competitive Position 2007
TUNE MONEY SDN BHD - FINANCIAL CARDS AND PAYMENTS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Tune Money Sdn Bhd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Tune Money Sdn Bhd: Competitive Position 2007
ATM TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 120 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 124 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 125 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 126 Store Cards Sector Performance: 2003-2008
Table 127 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 128 Store Cards Sector Performance: % Growth 2003-2008
Table 129 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 130 Store Cards: Number of Cards by Issuer 2003-2007
Table 131 Store Cards Forecast Sector Performance: 2008-2013
Table 132 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 133 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 134 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013