Finance Ministry: 168,000 BNPL users owe RM3.8b, but only RM121m is overdue
She said the outstanding BNPL loan balance for the same period stood at RM3.8 billion, representing 0.2 per cent of Malaysia's total household debt.
However, the amount of BNPL debt that was unpaid or overdue remained manageable, amounting to RM121.8 million or 3.2 per cent of the total BNPL loan balance, she said during a question and answer session in the Dewan Rakyat today.
She was responding to a question from Mohd Syahir Che Sulaiman (PN-Bachok) regarding the current status of BNPL debt in the country and the government's efforts to mitigate the risk of excessive indebtedness.
Citing a 2024 study by the Consumer Credit Oversight Board Task Force involving 21,000 active BNPL account holders, Lim said BNPL users generally exhibited good financial discipline.
'They also repaid BNPL loans with a low default rate. According to the study, approximately 88 per cent made all payments on time, 12 per cent made late but full payments, and fewer than 0.5 per cent were unable to repay in full,' she explained.
In response to a supplementary question from Khoo Poay Tiong (PH-Kota Melaka) on measures to safeguard consumer interests, Lim said the Consumer Credit Commission (CCC), which will be established under the Consumer Credit Act 2025, will adopt a risk-based and proportionate supervisory approach for credit consumers.
She said supervision would be carried out through periodic inspections and ongoing monitoring, the same methods used by Bank Negara Malaysia and the Securities Commission Malaysia.
'The CCC's supervisory approach will prioritise the protection of credit consumers, focusing on fair treatment, transparency, and the development of a responsible credit market.
'This will be supported by a regulatory framework that includes licensing and conduct standards under the Consumer Credit Act, empowering the CCC to supervise credit providers and credit service providers, and to take appropriate enforcement action,' she added. — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
an hour ago
- Malay Mail
Next payout of STR aid starts tomorrow, now helping 8.6 million Malaysians
KUALA LUMPUR, Aug 11 — The third phase of the Sumbangan Tunai Rahmah (STR) will reach 8.6 million Malaysians starting tomorrow, the Finance Ministry said today. It added that the number of recipients is now 300,000 higher than the first phase in January. Prime Minister Datuk Seri Anwar Ibrahim, who is also the finance minister, attributed the increase to opening up applications indefinitely. 'The year-round application and appeal process reflects the Madani government's commitment to the trust it holds in improving the welfare of the people, ensuring that no one is left behind from sharing in the nation's prosperity,' he said in a statement. 'More than just cash assistance, STR provides a boost for recipients to achieve financial independence, so that we may realise the equity envisioned in the Madani Economy.' Payments for this phase will total RM2 billion, with up to RM650 per household. Distribution will be through bank transfers or cash payments at Bank Simpanan Nasional. Categories of recipients include low-income households, senior citizens without partners, and single individuals. The ministry also reminded the public to use the official STR portal to avoid scams.
Free Malaysia Today
an hour ago
- Free Malaysia Today
SARA ensures Orang Asli won't have to replace rice with cassava
Harun Abus and Suria Kamarul with their household goods purchased with the MyKad-based SARA system. (Bernama pic) KOTA BHARU : For some members of the Orang Asli community in Gua Musang, the Sumbangan Asas Rahmah (SARA) initiative means they no longer have to substitute rice with cassava. 'We no longer have to replace rice with cassava. SARA has transformed our daily lives, particularly in securing basic food supplies,' said Amoi Asud, 36, of the Temiar tribe from Kampung Jader, Pos Simpor in Gua Musang. With just the MyKad verification, she said, her husband can travel to town to stock up on rice and dry food such as noodles and vermicelli for the family, saving time and effort. 'This has helped us to ensure that we always have food and no longer have to depend on cassava when rice runs out,' she said. Suria Kamarul, 24, a Mendriq housewife from Kampung Kuala Lah in Gua Musang, said her MyKad now acts like a 'multi-purpose card', enabling her to purchase basic items at registered grocery stores, even those nearly 10km from her home. 'We make the most of this RM100 monthly aid to buy groceries and daily necessities,' said Suria, who plants lemongrass with her husband. Her husband, Harun Abus, 24, a rubber tapper from the same district, said the MyKad system is more practical than cash aid as it has helped control spending, and is also more convenient as the number of registered shops is growing. 'SARA has had a big impact on our community, most of whom have no steady income. With more village shops registered under SARA, it's easier for those of us living far from town,' he said. Zariana Awang Mat, a 34-year-old single mother of five, said the assistance she has received since January has enabled her to purchase her children's needs without having to prepare cash in advance. SARA is a targeted cash aid initiative now expanded to 5.4 million recipients, comprising 700,000 existing e-Kasih beneficiaries and 4.7 million Sumbangan Tunai Rahmah (STR) recipients. Under Budget 2025, the allocation for STR and SARA was increased to RM13 billion from RM10 billion previously, while the annual SARA rate was raised to RM2,100 from RM1,200 last year. The move is in line with the Madani economic framework, which focuses on empowering low-income groups through equitable opportunities, better living standards and comprehensive social protection. In conjunction with the National Day celebration, the government has also announced a one-off RM100 cash aid for all Malaysian citizens aged 18 and above under the SARA programme. The initiative is expected to benefit 22 million people, involving an additional RM2 billion, bringing the total allocation for STR and SARA this year to RM15 billion, the highest in the nation's cash aid history. As of July 29, some 4,500 registered retail outlets nationwide have joined the SARA programme, offering more than 90,000 essential daily goods in 14 categories, including rice, eggs, medicines, cleaning supplies, school necessities and personal hygiene items.
Malay Mail
an hour ago
- Malay Mail
‘Less waiting, less queueing': Johor commuters back RTS2 link to Singapore's Tuas
JOHOR BARU, Aug 11 — Johor Menteri Besar Datuk Onn Hafiz Ghazi's proposal for a second Rapid Transit System (RTS) Link between Tuas and Iskandar Puteri has reportedly drawn support from commuters in southwest Johor. Singapore's CNA said the plan was welcomed by residents in areas such as Gelang Patah, Pontian and Kulai, who currently rely solely on buses to make the daily cross-border journey via the Tuas Second Link to Singapore. At Gelang Patah bus terminal last Tuesday, CNA observed more than 100 people in line by 5am, with the first Causeway Link bus quickly filling to capacity and forcing most to wait for the next service. 'During morning rush hour, this is normal,' commuter Kevin Foh was quoted as saying. 'Sometimes we have to wait for two to three buses before we can board, if we are lucky.' Foh, a Gelang Patah resident in his mid-30s who is employed in Singapore's retail sector, said the proposed RTS2 would cut his travel time. 'I will just take a taxi from my house to (the proposed RTS station in Iskandar Puteri) instead of this bus station and take the train over to Singapore. It will be much quicker — less waiting time, less queueing hopefully.' Onn Hafiz announced the proposal on July 31 after meeting Singapore Prime Minister Lawrence Wong, saying it was in line with a decree by Johor Regent Tunku Ismail Sultan Ibrahim. He did not specify where stations would be located. The first Johor-Singapore RTS Link, connecting Bukit Chagar in Johor Baru to Woodlands North, is scheduled to open in December 2026, with rail installation works 56 per cent complete as of June. Bukit Chagar station is about 25km from Gelang Patah — a journey that can take up to two hours by bus during peak periods. Analysts reportedly told CNA the RTS2 could improve travel for western Johor commuters and boost development in Iskandar Puteri, part of the Johor-Singapore Special Economic Zone. However, they reportedly said that last-mile connectivity in Tuas and Iskandar Puteri remains limited, and questioned whether passenger volumes would justify construction costs.
