Consumer Credit Bill 2025 passed, regulating commission to be set up
Deputy Finance Minister Lim Hui Ying said the bill was enacted to address significant gaps in the unregulated industry, particularly businesses that target vulnerable credit consumers who are susceptible to exploitation.
The bill also aims to standardise the regulatory framework in the currently diverse consumer credit landscape in Malaysia.
The bill was unanimously approved after debate by 24 members of parliament.
Under the Consumer Credit Act 2025, the Consumer Credit Commission (CCC) will be established to regulate credit businesses that currently operate without a licence or specific monitoring.
'The Consumer Credit Act 2025 will be framed as a master act that is complementary to existing acts under the administration of authorities, regulators and supervisors, and does not duplicate the functions or roles of existing ministries and agencies.
'This includes the Ministry of Housing and Local Government (KPKT), the Ministry of Domestic Trade and Cost of Living (KPDN), the Malaysia Cooperatives Commission, Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC),' she said when winding up the debate.
She explained that the integrated regulatory approach will be implemented in phases by taking into account the readiness of the industry and the capabilities of the CCC which will be enhanced from phase to phase.
For Phase 1 preparations, she said, KPKT as the regulatory and supervisory authority will ensure that licensed money lenders comply with the aspects of credit consumer protection introduced through the act.
With the enactment of the act, KPKT will receive an additional legal mandate to regulate syariah-compliant businesses for both sectors, namely the regulation of loans with pawnshops. KPDN will also amend several provisions in the Hire Purchase Act 1967 to strengthen consumer protection and modernise existing provisions.
Commenting on the maximum interest rate charged by credit businesses, Lim explained that the government will not set any interest rate cap in phase 1.
'We will not set (interest rates) in phase 1… however, we must collect data in phase 1 and 2,' she said.
In phase 2, which is expected to start in 2028, the regulatory functions currently held by the KPKT and KPDN will be transferred to the CCC. This includes money lending, pawnshop business, hire purchase and credit sales activities.
Meanwhile, phase 3, targeted to begin in 2031, will focus on the regulatory consolidation of all consumer financial activities under one centralised entity after a comprehensive review by the government. — BERNAMA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Express
9 minutes ago
- Daily Express
No registration for RM100 cash aid, beware of scams, warns government
Published on: Saturday, July 26, 2025 Published on: Sat, Jul 26, 2025 By: FMT Reporters Text Size: Deputy finance minister Lim Hui Ying said the ministry has received complaints about fake links and messages claiming that registration is required to receive the cash aid. (Bernama pic) PETALING JAYA: The government has urged the public to be cautious of scams and other fraud attempts over the one-off RM100 cash assistance under the Sumbangan Asas Rahmah (SARA). Speaking at an event in George Town, Penang, today, deputy finance minister Lim Hui Ying said the assistance does not require any application or registration whatsoever, Bernama reported. She said the amount will be credited directly into the MyKad of all Malaysians aged 18 and above starting Aug 31. 'We have received numerous inquiries about how to register for the RM100 SARA assistance. There have also been complaints about fake links and messages claiming that registration is required to receive the aid. 'These claims are false and dangerous. Do not click on any such links, they are scams. 'I want to stress that there is no need to apply or register for the RM100 cash aid, as it will be automatically credited to the recipients' MyKad,' she said. Lim, who is the MP for Tanjung, reassured the public that there is no cause for concern as everyone aged 18 and above will receive the cash aid. 'Only if they do not receive it after Aug 31 will we take further action and inform them accordingly,' she said. On July 23, Prime Minister Anwar Ibrahim announced several major initiatives by the government, including the one-off RM100 cash aid, the postponement of toll rate hikes on 10 highways, and a drop in the price of RON95 fuel to RM1.99 per litre. Lim also said the government is open to considering the inclusion of wet goods such as chicken, meat and fish under SARA. 'We continue to listen to feedback and suggestions regarding the list of items under SARA. There have been proposals to include wet items such as fish, meat and chicken. We will consider expanding the list when the time is right,' she told reporters. She said the government expanded the SARA initiative on May 1 to include household cleaning products, such as laundry detergent, floor cleaner, and dishwashing liquid. These are in addition to the existing categories covering basic food items, medicines, school supplies, and personal hygiene products. Their inclusion increased the number of product categories from 13 to 14, covering 90,000 types of goods. This decision was based on feedback received during the implementation of SARA earlier this year, she said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
an hour ago
- New Straits Times
RM100 Sara aid requires no registration, public warned of scams
GEORGE TOWN: The Finance Ministry has urged the public to be cautious of fraudulent attempts linked to the one-off RM100 cash assistance under the Sumbangan Asas Rahmah (Sara). Deputy Finance Minister Lim Hui Ying said the assistance does not require any application or registration, as it will be credited directly to all eligible MyKad holders aged 18 and above starting Aug 31. "We have received numerous inquiries about how to register for the RM100 Saraassistance. "There have also been complaints about fake links and messages claiming that registration is required to receive the aid. These claims are false and highly dangerous. Do not click on any such links - they are scams," she warned. "I want to stress that there is no need to apply or register for the RM100 assistance, as it will be automatically credited to recipients' MyKad. So, there's no cause for concern - everyone aged 18 and above will receive it. "Only if they do not receive it after Aug 31 will we take further action and inform them accordingly," she said. Lim, who is also Tanjong member of parliament, said this to reporters after officiating the Penang Sijil Tinggi Persekolahan Malaysia (STPM) Reference Book Launch and the Sijil Pelajaran Malaysia (SPM) Chinese Language and Moral Education Answering Techniques Workshop here today. On July 23, Prime Minister Datuk Seri Anwar Ibrahim announced several major initiatives under the Madani government, including one-off RM100 cash assistance under the Sara initiative, the postponement of toll rate hikes on 10 highways, and a fuel price cut for RON95 to RM1.99 per litre. Meanwhile, Lim said the government is also open to considering the inclusion of wet goods such as chicken, meat, and fish under Sara. However, she noted that this would require thorough study, including gathering feedback from all stakeholders, particularly SARA recipients. "We continue to listen to feedback and suggestions regarding the list of items under Sara. "There have been proposals to include wet goods such as fish, meat, and chicken. We will monitor and assess the situation, and when the time is right and if deemed necessary, we will consider expanding the list," she said. She said that on May 1, the government expanded the Sara initiative to include household cleaning products, such as laundry detergent, floor cleaner, and dishwashing liquid, in addition to the existing categories covering basic food items, medicines, school supplies, and personal hygiene products. The inclusion of these new items increased the number of eligible product categories from 13 to 14, covering a total of 90,000 types of goods. This decision was based on feedback received during the implementation Sara early this year.
Malaysian Reserve
an hour ago
- Malaysian Reserve
RM100 SARA aid requires no registration, public warned of scams
GEORGE TOWN — The Ministry of Finance (MOF) has urged the public to be cautious of fraudulent attempts linked to the one-off RM100 cash assistance under the Sumbangan Asas Rahmah (SARA). Deputy Finance Minister Lim Hui Ying said the assistance does not require any application or registration, as it will be credited directly to all eligible MyKad holders aged 18 and above starting Aug 31. 'We have received numerous inquiries about how to register for the RM100 SARA assistance. There have also been complaints about fake links and messages claiming that registration is required to receive the aid. These claims are false and highly dangerous. Do not click on any such links — they are scams,' she warned. 'I want to stress that there is no need to apply or register for the RM100 assistance, as it will be automatically credited to recipients' MyKad. So, there's no cause for concern – everyone aged 18 and above will receive it. Only if they do not receive it after Aug 31 will we take further action and inform them accordingly,' she said. Lim, who is also the Member of Parliament for Tanjong, said this to reporters after officiating the Penang Sijil Tinggi Persekolahan Malaysia (STPM) Reference Book Launch and the Sijil Pelajaran Malaysia (SPM) Chinese Language and Moral Education Answering Techniques Workshop here today. On July 23, Prime Minister Datuk Seri Anwar Ibrahim announced several major initiatives under the MADANI Government, including one-off RM100 cash assistance under the SARA initiative, the postponement of toll rate hikes on 10 highways, and a fuel price cut for RON95 to RM1.99 per litre. Meanwhile, Lim said the government is also open to considering the inclusion of wet goods such as chicken, meat, and fish under SARA. However, she noted that this would require thorough study, including gathering feedback from all stakeholders, particularly SARA recipients. 'We continue to listen to feedback and suggestions regarding the list of items under SARA. There have been proposals to include wet goods such as fish, meat, and chicken. We will monitor and assess the situation, and when the time is right and if deemed necessary, we will consider expanding the list,' she said. She said that on May 1, the government expanded the SARA initiative to include household cleaning products, such as laundry detergent, floor cleaner, and dishwashing liquid, in addition to the existing categories covering basic food items, medicines, school supplies, and personal hygiene products. The inclusion of these new items increased the number of eligible product categories from 13 to 14, covering a total of 90,000 types of goods. This decision was based on feedback received during the implementation SARA early this year. — BERNAMA
