2026-03-04 / Debate: Microfinance and Credit Regulatory Authority Bill - Second Reading and Committee Stage
Hon. Kabir Hashim
2026-03-04
Hon. Kabir Hashim raised two key concerns regarding the Bill under debate. First, he questioned whether community-based organizations, voluntary organizations, and funeral aid societies would be classified separately or brought under the same legislative framework and subjected to its regulations. Second, he warned that if such voluntary organizations are reclassified as lending bodies under the Bill, their borrowers would be required to undergo Credit Information Bureau (CRIB) checks, which would disadvantage low-income individuals who rely on informal community mutual organizations as a last resort for credit when unable to access formal bank loans. He indicated he had additional points but concluded due to time constraints.
What happens after bringing this Bill? Will community-based organizations, voluntary organizations and funeral aid societies be taken as a separate category, or will they all be brought under this law and subjected to various rules? Not only that, they can be sent to the CRIB. For a small person who cannot get a bank loan, the last resort is to go to the village society and, on trust, take something from that mutual organization to build a livelihood—like a carting business. With this Bill, once those voluntary organizations are brought under it and made into lending bodies, they too will have to go to the CRIB. Accordingly, there are two big concerns here. I have a few more points, Hon. Deputy Speaker, but due to lack of time I will conclude.
Thank you very much.