Dr.Pajak’s very first free-standing store is located in Kubang Ria in Kuching, Sarawak. The flagship opened its doors in Sept 2024, offering pawning services, gold retail as well as a drive-through pawning service.
TRADITIONALLY, a pawn shop is where people leave their possessions such as gold jewellery and watches, as collateral to obtain an amount of money according to its value.
Dr.Pajak, the Malaysia Book of Records holder for the first drive-through pawn shop, now sets a new industry benchmark with its first free-standing flagship store.
Located in Kuching, Sarawak, the three-storey flagship store – open in Sept 2024, offers a modern take on a traditional industry.
Maxion Holdings Sdn Bhd managing director Tan Wang Chang, considers it a milestone for Dr.Pajak, as it is the first of its kind in Malaysia.
“Unlike traditional pawn shops, the flagship store offers a more transparent, professional and customer-centric approach,” Tan said in an interview, adding that it took them about a year to establish the store in the area of Kubah Ria.
“Inspired by the free-standing models of fast-food chains, the flagship store elevates the industry, showcasing how modern pawn shops have evolved into professional establishments,” he noted.
For centuries, pawn shops have provided quicker credit access to those with collateral, unlike conventional financial institutions.
Maxion Holdings Sdn Bhd managing director Tan Wang Chang (right) and marketing and branding head Marcus Chew with the two awards that Dr. Pajak won in the inaugural 2024 Madani Credit Awards for the Most Valuable Pawn Shop and Most Innovative Pawn Shop.
Over the years, this has given pawn shops an unsavoury reputation, especially among the Chinese community. Dr.Pajak aims to change this by introducing a modern, transparent and customer-centric business model.
“Moving away from traditional practices, we focus on providing a professional service experience with advanced technology and strict operating procedures to ensure customer trust and satisfaction,” said Tan.
He explained that all staff members are well-trained, as the company prioritises transparent and professional services, ensuring customers are guided at every step to understand the value of their items.
“A ticket will only be issued after the customer is satisfied with the value displayed and understands the procedure. The collateral is then sealed for the customer to sign as an assurance that it will not be opened until they redeem it,” he said.
Dr.Pajak accepts a wide range of items such as gold, silver, Swiss watches, designer handbags as well as Apple electronics, which were not commonly accepted by other establishments.
“In addition to pawnbroking services under the Dr.Pajak brand, Maxion Holdings also operates Dr.Emas, which offers competitive prices for brand new gold jewelry, making luxury gold more accessible to everyone,” he added.
Dr.Pajak made it into the Malaysia Book of Records in 2021 as the first drive-through pawn shop in the country, offering customers the convenience of pawning their goods without having to get out of their vehicle.
Diverse clients
Contrary to popular belief, pawn shops serve more than just low-income earners or those in need of quick cash.
Tan revealed that a significant portion of their clientele includes businessmen and wealthy individuals.
“Many small and medium sized enterprises (SMEs) and businessmen rely on pawn shops for quick access to funds, especially to manage cash flow, avoiding the lengthy bank loan process.
“Wealthy individuals also use our services as a safe deposit box.
Based on Dr.Pajak’s 15 branches nationwide, this practice is particularly common in Johor,” Tan said, emphasising that every transaction is handled transparently, regardless of the customer’s background.
Under Malaysian regulations, pawned items must typically be redeemed within six months. If not renewed or claimed, they may be auctioned off.
Tan added that to offer greater convenience, Dr.Pajak extends the redemption period to eight months – two months longer than the standard timeframe.
Old business, new innovations
Driven by a commitment to innovation, Dr.Pajak made history in 2021 by becoming Malaysia’s first drive-through pawn shop, earning a spot in the Malaysia Book of Records.
This unique model allows customers to pawn their items conveniently and securely without leaving their vehicle.
“This concept does not sacrifice the security aspect as we have put in a lot of effort to ensure the drive-through complies with all the rules and regulations outlined by the authorities,” he said.
Maxion Holdings Sdn Bhd managing director Tan Wang Chang (far left) giving Housing and Local Government Minister Nga Kor Ming (centre), Stulang assemblyman Andrew Chen (back, in pink) and other invited guests a tour of Dr.Pajak’s Bandar Selesa Jaya branch in Skudai, Johor Baru during their visit on Sept 5, 2024.
The drive-through pawn shop concept has also been emulated by competitors, but Tan sees this as proof that they are leading the industry in innovation.
“We pride ourselves for always pushing the envelope and coming up with new innovations to breathe new life into the centuries-old industry,” he said.
Another proud moment came when Housing and Local Government Minister Nga Kor Ming visited Dr.Pajak’s Bandar Selesa Jaya branch in Skudai, Johor Baru, on Sept 5 last year.
During his visit, he was introduced to the company’s modern services, including the drive-through pawn service, according to Tan.
“As a business regulated by the ministry, we are proud to be an exemplary modern pawn shop showcasing professionalism and transparency. We were glad to also receive positive feedback from the minister.”
Adding to their list of achievements, Dr.Pajak won two awards at the inaugural 2024 Madani Credit Awards, which recognises top players in the licensed moneylending and pawnbroker industries.
The awards were for Most Valuable Pawn Shop and Most Innovative Pawn Shop.
Taking challenges head-on
Despite the industry’s challenges, Tan and his business partners ventured into pawnbroking in 2017 after transitioning from the property sector.
Looking back, he recalled facing hurdles, including landlords refusing to rent to them due to the stigma surrounding pawn shops.
“We took these obstacles in our stride, motivating us to reshape the pawnbroking industry.
“As we look forward to further expanding our presence across the country, we are determined to continue innovating and redefining the industry through excellent and professional services.
“Our flagship store reflects Dr. Pajak’s leadership in innovation and we hope to continue pushing on to set new benchmarks for the pawnbroking industry,” he said.
