MPs call for separate BNPL data centre, stricter advertising rules

New Straits Times

21-07-2025

KUALA LUMPUR: Batang Sadong member of parliament Rodiyah Sapiee has proposed the establishment of a dedicated data centre for Buy Now, Pay Later (BNPL) services that is separate from Bank Negara Malaysia's Central Credit Reference Information System (CCRIS).
The move, she said, would allow data related to BNPL to be housed in a standalone database, instead of being integrated into conventional credit systems such as CCRIS.
"CCRIS is linked to major credit facilities such as housing or car loans. If BNPL data is included in this system, it could negatively affect the ability of low-income users to secure future financing," she said when debating the Consumer Credit Bill 2025 in the Dewan Rakyat.
She said the BNPL data centre could be placed under the Consumer Credit Commission to enable monitoring of BNPL transactions and credit risks, without disrupting users' primary credit and repayment records.
"This will preserve the effectiveness of BNPL as a microcredit instrument," she said.
Meanwhile, Bachok MP Mohd Syahir Che Sulaiman called for BNPL promotions and advertisements not to be misleading, such as using phrases like "interest-free", "easy approval", or "buy now, think later".
"Risk disclosures should be mandatory in all promotional materials."
He said mandatory disclosure of information must also include payment simulations and explanations of late payment penalties before users sign any agreement.
"The creditworthiness assessments must be tightened, especially regarding income verification. Today, even university students are increasingly trapped in outstanding BNPL debt."
He said support for consumers facing financial hardship must be clearly outlined, including rescheduling of payments, moratoriums, and automatic referrals to the Credit Counselling and Debt Management Agency in critical cases.
"These key points are essential to ensure that the Act, if passed, provides a balanced approach between credit accessibility and consumer protection, particularly for young people and low-income groups who are most vulnerable to financial risks."
Earlier, Deputy Finance Minister Lim Hui Ying tabled the Consumer Credit Bill 2025 for its second reading.
Twenty-three members of parliament are set to take part in the debate.
The Consumer Credit Bill 2025 aims to strengthen consumer protection by regulating the credit industry in Malaysia, including overseeing the BNPL scheme.