Dewan Rakyat passes Consumer Credit Bill to protect credit consumers
The bill, which was tabled for its second and third readings by Deputy Finance Minister Lim Hui Ying today, was debated by 23 lawmakers.
Lim said that once gazetted, the bill will introduce integrated regulations in phases, taking into consideration the industry's level of preparedness and the growing capacity of the Consumer Credit Commission, which will be gradually strengthened throughout each phase.
She added that the commission will also assume regulatory responsibilities in stages, starting with currently unregulated credit providers, with full centralisation of oversight expected by 2031.
"In Phase 1, the commission will regulate all credit businesses and credit service providers not currently under the purview of any authority.
"However, Syariah-compliant financing facilities and Shariah-compliant pawnbroking activities will continue to be regulated by the Housing and Local Government Ministry (KPKT).
"This will be followed by Phase 2, which involves the transfer of regulatory responsibilities for certain credit activities, such as moneylending and pawnbroking currently under KPKT, as well as hire purchase and credit sales currently under the Domestic Trade and Cost of Living Ministry. This phase is expected to commence in 2028," she said.
Phase 3 is expected to commence in 2031, with the aim of centralising behavioural regulation across all financial market activities in Malaysia, subject to a comprehensive review by the government.
"This phased approach is designed to ensure that the regulatory transformation of the consumer credit industry, and the transition process itself, proceeds in an orderly manner to minimise implementation risks.
"At the same time, it enables the commission to build its capacity and capabilities to effectively take on greater responsibilities," she said.
Earlier, Lim said the commission will be established as a regulatory body under the Finance Ministry and will regulate business sectors currently unregulated by any authority, through a licensing and registration framework to be implemented under the act.
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