Domestic Trade and Consumer Affairs Minister Mohd Shafie Apdal has expressed his concern about the rising number of credit cards in circulation.

"Credit cards are useful tools to have in terms of security and convenience. Many prefer to carry credit cards instead of cash," Shafie said.

"However, in the wrong hands, we are likely to see more people as young as below 30 years of age being declared bankrupt," the New Straits Times quoted him as saying.

If a credit card owner fails to make payment for six months, the credit card should be discontinued, Shafie said.

"The banks have taken similar measures to suspend defaulters who make late payments. This is one of many measures that the bank can use to encourage payments," he said.

20 per cent jump

Bank Negara statistics show that at the end of 2005, there were 7.94 million credit cards in circulation, a 20.7 per cent jump from 6.58 million in December 2004.

Credit card purchases also grew by 20 per cent to RM37.72 billion last year.

Malaysians made RM2.95 billion in cash withdrawals from credit card at ATM machines and paid over RM145 million in cash advance fees.

On credit card cloning, Shafie said, the on-going enforcement to monitor situation and better security features had reduced credit card fraud by between 70 and 80 per cent.