MORE people will pawn their valuables or seek refinancing after Hari Raya Aidilfitri as the escalating cost of living bites, pawnbroker Ar-Rahnu told The Malaysian Insight.

The Islamic pawnbroking scheme is looking at RM110 million in loan disbursements to customers or possible new clients next month.

Its co-op bank department assistant manager Muhamad Hafizh Abdul Rahim said its clients depend on changes in gold prices but added that the number would likely increase after Raya.

“Currently, there is not much increase in customers during the Ramandan month.

“This is because people want to wear their jewellery during Hari Raya. Now, we get more people redeeming their items than pawning them,” he told The Malaysian Insight.

He said they are expecting a market surge after Raya.

Hafizh said for April they expect about RM55 million in loan disbursements.

“In May we expect to disburse double this amount which is RM110 million.

“We are expecting new clients and there will definitely be overlap (financing) with the existing products that we already have (at Ar Rahnu).”

A recent survey by UCSI University showed that 89% of respondents were “very concerned” about the escalating cost of living as it bites deep into their incomes.

Inflation had risen by 0.8%, from 2.5% in 2021 to 3.3% in 2022, the Statistics Department said.

In a survey of Malaysians aged 18 and above, it also found that 61% of the respondents did not think the government was doing enough to address cost of living issues.

The university said 1,031 people took part in the survey with 59% of them having jobs, 12% unemployed, 23% students and 6% retirees.

Hafizh said currently they have 30 Ar-Rahnu branches nationwide including in Sabah and Sarawak.

He said all outlets disburse about RM3.5 million to RM4.5 million daily.

He added that Ar Rahnu’s lease period for items is 12 months with a six-month extension without processing fees. – April 17, 2023.