Finance Ministry: BNPL transactions hit RM9.3b in first half of 2025 as low-income Malaysians face rising debt risks
Deputy Finance Minister Lim Hui Ying said the surge in BNPL transactions exposes consumers to risks, especially those in the low-income group and with poor financial literacy to the risk of unmanageable debts.
The total value of BNPL transactions rose 31 per cent from RM7.1 billion in 2H 2024 to RM9.3 billion in 1H 2025.
Meanwhile, the number of active BNPL accounts also increased from 5.1 million at the end of last year to 6.5 million as of end-June this year.
'To address this issue in protecting the interests of credit consumers, a statutory body known as the Consumer Credit Commission (SKP) will be established under the Consumer Credit Act,' Lim said when tabling the Consumer Credit Bill 2025 for the second reading in the Dewan Rakyat today.
She said the commission, which will come under the Ministry of Finance, will regulate business sectors that are currently not regulated by any party via a licensing and registration framework.
Lim said the Consumer Credit Bill is tabled as part of the government's effort to establish comprehensive legislation to protect credit consumers and restructure the nation's credit industry landscape.
The bill was drafted to tackle two main issues: the presence of unregulated industry players and inconsistencies in credit sector oversight by various authorities.
'The bill's main objective is to protect the interests of credit consumers in the country by regulating all credit businesses and credit service businesses, ensuring proper conduct and responsible lending practices by industry participants as well as promoting a fair, efficient, and transparent credit industry,' she said.
According to Lim, the bill outlines the responsibilities of the SKP, including advising the government on national consumer credit policy; promoting fair, professional, and responsible practices; and licensing based on the 'fit and proper' principle.
'Through the implementation of the bill, the government demonstrates a strong commitment to creating a safer credit ecosystem for the people's well-being,' said Lim.
Lim tabled the bill for its first reading in the Dewan Rakyat on March 4. — Bernama
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