Payung Rahmah to feature used vehicle loans, insurance for B40 groups

SUBANG JAYA - The Domestic Trade and Cost of Living Ministry is planning to introduce financing loans and insurance for used vehicles for the B40 group under the Payung Rahmah initiative.

Its minister Datuk Seri Salahuddin Ayub said the ministry will discuss the initiative with banking institutions and insurance companies.

"We have the idea, so next we hold a meeting. The meeting will probably be held next week.

"Even the management of MBSB Bank Berhad has stated that they will offer a special loan to B40 groups.

"Similar to how insurance operates, perhaps there will be insurance for women and youth besides introducing insurance for used car for people who can't afford a brand new car," he said.

He said this during a press conference after officiating the Raya Mydin Classic Campaign under the Payung Rahmah initiative at Pasar Raya Besar Mydin USJ today.

Also present was Mydin Mohamed Holdings Bhd managing director Datuk Ameer Ali Mydin.

Salahuddin said he had discussed with insurance companies about the Rahmah insurance proposal for used vehicles yesterday.

"Yesterday, I had discussed with one of the insurance companies because used cars, for example, are at risk of major damage, such as in the engine and gearbox.

"There will be Rahmah insurance offered to the people who can't afford a brand new car and can only buy used cars. But we want to have a protection scheme for the car. That's the concept we have in mind," he said.

Salahuddin said that he had also met International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz last Monday to get his opinions and suggestions about the meeting with the local banks.

He added that Tengku Zafrul assured his cooperation to ensure the government can successfully implement various other initiatives under Payung Rahmah.

"Zafrul is very cooperative and supportive. He will make effort to meet with the bank officials so that the discussion can take place," he added.

Salahuddin said Tengku Zafrul had also previously helped the Domestic Trade and Cost of Living Ministry to promote Payung Rahmah initiatives through the former finance minister's Tik Tok account which has nearly 5 million followers.