Updated: 3/9/2024
It's official. UOB has announced a full devaluation of its credit card lineup. Hence, this article is no longer relevant. I will maintain this article for reading and additional insights.
Please read my newly published article on the devaluation here.
Updated: 19/8/2024
It appears that UOB Malaysia has backtracked on the devaluation! The UOB Visa Infinite main page is now showing the old conversion rate of 9,000 UNIRM:1,000 airline miles.
Read our latest article here.
Original Article:
UOB Malaysia has cheekily introduced a devaluation to its UOB Visa Infinite credit card. At the time of writing, the main sections of UOB Malaysia's website have yet to reflect these changes, though the updated terms and conditions provide clarity. I will revise this article as more information becomes available.
The UOB Visa Infinite has long been celebrated as a well-rounded credit card, offering a variety of benefits, including exclusive access to UOB’s Private Lounge at the Plaza Premium Lounge in KLIA Terminal 1—a poor man's version of the Plaza Premium First, which is exclusive to CIMB Travel credit cardholders and other premium passengers.
However, devaluations are inevitable for all credit cards. I previously discussed potential devaluation scenarios and strategies to mitigate impacts, notably in my coverage of the Maybank 2 Cards Premier situation.
Let's delve into the details: the UOB Visa Infinite now offers 10X UNIRM for overseas spending, an increase from the previous 8X UNIRM. While this might initially seem like a significant enhancement, UOB has simultaneously raised the conversion rate from UNIRM to airline miles.
Previously, 9,000 UNIRM would convert to 1,000 airline miles, but this has now increased to 12,000 UNIRM for 1,000 airline miles.
With the updated 10X UNIRM earning rate and the new conversion rate of 12,000 UNIRM to 1,000 airline miles, the Miles per Ringgit (MPR) has decreased slightly to 0.83 from the previous 0.88.
Therefore, the seemingly improved 10X UNIRM for overseas spending does not offer better value than the former 8X UNIRM.
Curiously, UOB did not disclose this increased conversion rate in its updated terms and conditions. I discovered this change only after reviewing the UOB Visa Infinite’s main page, as shown in the screenshot above.
At the time of writing, UOB Malaysia's UNIRM Rewards Catalogue page still shows the old redemption rate, so I'm not sure if there is an error in communication here. Given the apparently chaotic internal affairs within UOB after the Citi merger recently, I can't say I'm surprised.
Changes to UOB Privilege Banking & Metal Visa Infinite
Interestingly, UOB Malaysia has also updated the terms and conditions for the UOB Privilege Banking Visa Infinite and UOB Visa Infinite Metal Card to reflect the same 10X UNIRM for overseas spending. However, there is no clarification on whether the conversion rates have changed, so we are still awaiting further details from UOB on this matter.
Currently, we know that the UOB Visa Infinite, which previously had a 9,000:1,000 conversion threshold, has now moved to 12,000:1,000. It would be reasonable to expect the UOB Privilege Banking Visa Infinite to maintain a more favorable conversion rate than the standard UOB Visa Infinite, though this remains uncertain.
Similarly, the UOB Visa Infinite Metal Card might also feature a different conversion rate, as offering 10X UNIRM with a 4,500:1,000 conversion rate would represent a substantial increase in value, and I doubt UOB Malaysia is as generous.
The Overall Devaluation of the UOB Visa Infinite
It’s important to note that if the conversion rate from UNIRM to airline miles has indeed increased to 12,000 UNIRM for 1,000 airline miles, this represents a significant devaluation across other spending categories as well.
For instance, with the current earning rate of 5X UNIRM for dining spend (subject to a minimum monthly dining spend of RM1,000), the previous Miles per Ringgit (MPR) of 0.55 would now drop to 0.41.
This adjustment makes the value proposition of the UOB Visa Infinite notably less attractive, especially considering the substantial RM120,000 annual income requirement to qualify for this card.
In comparison, the CIMB Visa Infinite, which has a lower annual income requirement of RM60,000, offers a 0.4 MPR on Enrich Miles and 0.33 MPR on Avios, Asia Miles, and others. Furthermore, the CIMB Visa Infinite’s tiered bonus structure can quickly boost its MPR to 0.64, offering a more compelling value in contrast to the UOB Visa Infinite under the new terms.
A Strategic Play by UOB?
With all these recent changes, one might wonder if UOB has a larger strategy at play. Considering that UOB’s UNIRM pools together across different cards, you could effectively maintain the original conversion rate of 9,000 UNIRM to 1,000 airline miles, provided you also hold the UOB PRVI Miles Elite card.
The UOB PRVI Miles Elite offers a respectable 5X UNIRM on airline spend, making it a compelling companion to the UOB Visa Infinite. This essentially means that by holding both the UOB Visa Infinite and the UOB PRVI Miles Elite, you can achieve the same overseas Miles per Ringgit (MPR) rate of 1.11.
However, this strategy comes with the caveat of potentially paying annual fees for both cards, especially if you don’t meet the minimum spend requirement to waive the fee for the UOB Visa Infinite.
Of course, let's not forget the 6,400:1,000 conversion rate of the UOB Zenith World Elite, but that's a different kind of conversation altogether, given the card has a RM192,000 annual income requirement.
Final Thoughts
These changes took effect yesterday, leaving little opportunity for cardholders to convert their UNIRM to airline miles under the previous, more favorable terms.
I have now updated my Ultimate Guides to reflect these changes. However, since the conversion rates for the UOB Privilege Banking Visa Infinite and the UOB Visa Infinite Metal Card remain unclear, I have left them unchanged for now. Expect further updates to this article as more information becomes available.
