Latest news with #ConsumerCreditBill
The Sun
6 hours ago
- Business
- The Sun
Buy now, pay later: A convenient trap for young Malaysians
USING the 'buy now, pay later' (BNPL) scheme for the first time felt harmless. Just three easy payments for a pair of shoes that were not really necessary. It seemed like a smart move at the time – no interest, no hassle and no guilt. But that mindset is exactly what gets so many young people into trouble. From 2020 to 2025, more than 5,189 Malaysians under the age of 34 were declared bankrupt. Most of them were between 25 and 34, an age group that should be building their financial future. This is not just a statistic; it reflects a growing reality for many young adults trying to manage life's expenses with limited income and increasing pressure to spend. With BNPL so widely available and heavily promoted, it is no surprise that more people are relying on it. The recent Consumer Credit Bill passed in Parliament shows how urgent the problem has become. The new law introduces the Consumer Credit Commission to oversee BNPL and other non-bank credit providers. It is a step in the right direction but the fact that it is even needed speaks volumes. BNPL is appealing because it feels light at first. No upfront payments, offers interest-free instalments and fast approval. But the catch comes later, quietly. Miss one instalment and there is a penalty. Miss a few and the debt will grow without warning. Penalties between RM10 and RM50 may not sound like much until they keep stacking up. It becomes easy to lose track of how many items are being paid off. What began with one small item turns into four or five ongoing commitments. BNPL encourages impulse decisions. The thought process is no longer 'can I afford this' but 'can I split this'. Bank Negara reported that most BNPL users earn below RM3,000 a month. For many, even one missed payment affects rent, food or transport. BNPL has helped some low-income families afford essentials, like baby formula and groceries, especially during difficult times. That is understandable but it should not become the default way to survive. In the first half of 2025 alone, Malaysians spent RM9.3 billion through BNPL, of which RM121 million is overdue, and the numbers are not slowing down. What is worrying is how normalised it has become. They are not only used for emergencies or needs but also for clothes, gadgets and online shopping sprees. These habits can lead to debt that may seem manageable but can become overwhelming over time. Therefore, regulation helps. However, awareness matters more. Many still do not grasp the risks they are taking. Educational institutions should teach students on money management. Financial literacy is a skill that needs to be taught and cultivated early, not learned after it has become a problem. BNPL is not an enemy but without control, it can turn into a cycle that will be hard to break. The best solution is to have self-discipline before it is too late. Darren Ong Wei Shen is a student at City University Malaysia. Comments: letters@
New Straits Times
a day ago
- Business
- New Straits Times
Buy Now, Pay Later should not be the default way to survive
LETTERS: The first time using Buy Now, Pay Later (BNPL) felt harmless. Three easy payments for a pair of shoes. No interest, no hassle, no guilt. But that mindset is exactly what gets so many young people into trouble. From 2020 to 2025, more than 5,189 Malaysians under the age of 34 were declared bankrupt. Most of them were between 25 and 34, an age group that should be building their financial future. This is not just a statistic. It reflects a growing reality for many young adults trying to manage life's expenses with limited income and increasing pressure to spend. With BNPL so widely available and heavily promoted, it's no surprise that more people are relying on it. The recent Consumer Credit Bill passed in Parliament shows how urgent the problem has become. The new law introduces the Consumer Credit Commission to oversee BNPL and other non-bank credit providers. It's a step in the right direction, but the fact that it's needed at all speaks volumes. BNPL is appealing because it feels light — no upfront payments, interest-free instalments, and fast approval. But the catch comes later, quietly. Miss one instalment and there's a penalty. Miss a few, and the debt grows without warning. Penalties between RM10 and RM50 might not sound like much, until they keep stacking up. What began with one small item turns into four or five ongoing commitments. BNPL encourages impulse decisions. The thought process is no longer "can I afford this," but "can I split this". Bank Negara Malaysia reports that most users earn below RM3,000 a month. For many, even one missed payment affects rent, food or transport. BNPL has helped some low-income families afford essentials like baby formula and groceries, especially during difficult times. That's understandable. But it shouldn't become the default way to survive. In the first half of 2025 alone, Malaysians spent RM9.3 billion through BNPL. Some RM121 million of that is overdue. The numbers aren't slowing down. What's worrying is how normalised it has become. Not just for emergencies or needs, but for clothes, gadgets and online shopping sprees. These habits can lead to ongoing debt that feels manageable at first but becomes overwhelming over time. Regulation helps. But awareness matters more. Many still don't fully understand the risks they're taking. Educational institutions should do more to teach students about managing their money. Financial literacy is a skill that needs to be taught and cultivated early, not learned after it has become a problem. BNPL is not the enemy. But without control, it turns into a cycle that's hard to break.
The Star
21-07-2025
- Politics
- The Star
Asean News Headlines at 10pm on Monday (July 21, 2025)
Malaysia: * Dewan Rakyat passes the Consumer Credit Bill * Court of Appeal grants stay for PM Anwar in civil suit proceedings * Nine areas record unhealthy API as of 3pm, July 21 * Wisma Putra yet to receive nomination of Nick Adams as US ambassador to Malaysia * Do not cross the 'red line', Anwar warns foreign powers including US * Trial for Chinese national who allegedly stabbed ex-girlfriend on uni campus * Bring it on, Anwar dares opposition to table no-confidence vote * Raid on Subang Jaya private party nets four suspected drug dealers * MACC to call up 20 more witnesses in RM180mil data centre probe * Penang Development Corp cooperating with police in MBI probe * A-G calls for overhaul of govt's Pre-Qualification procurement process * MACC seizes over RM332mil in assets in major scrap metal smuggling probe * Auditor-General's Report: Three UKM tenders worth over RM50mil did not follow SOP * Rise in 'buy now, pay later' accounts puts vulnerable consumers at risk, says Finance Ministry * Defence white paper mid-term review to be presented to select committee soon, says Mohamed Khaled * Wan Ahmad Farid was sole candidate for Chief Justice, no last minute changes made, says Anwar Water Polo - World Aquatics Championships - Women - Semi Final - Hungary v Spain - OCBC Aquatic Centre, Singapore - Monday, July 21, 2025; Hungary's Vanda Valyi scores a penalty goal. -- Photo: REUTERS/Edgar Su Singapore: * Singapore: Jail, caning for man who held metal rod to cashier's neck in failed robbery attempt * Singapore-Malaysia joint emergency exercise to affect the Tuas second link traffic on July 23 * Early morning bus driver strike causes disruption at Johor-Singapore Causeway * Singapore's Chiral Comics partners Archie Comics for exclusive SG60 book cover * Singapore military helps battle cyberattack:, says minister * Witness stand not arena for humiliation in sex offence cases, Singapore judge reminds lawyers * More stingrays, fewer sharks for sale at Singapore's fishery ports, say researchers * Singapore central bank to place S$1.1bil with asset managers to boost stock market Indonesia: * AFF U-23: 1,620 strong security deployment for heated Indonesia-Malaysia football clash in Jakarta * FIFA maintaining regional office in KL, not moving to Jakarta * Indonesia's Prabowo rolls out first of 80,000 'Red-White' cooperatives to boost economic growth * Indonesian exporters seek to split tariffs with US buyers to ensure demand * Asia shares, yen look past Japan politics as earnings loom * Oil prices little changed as investors eye impact of new sanctions on Russia Artistic Swimming - World Aquatics Championships - Team Technical - World Aquatics Championships Arena, Singapore - Monday, July 21, 2025; Team Thailand performs during preliminaries. -- Photo: REUTERS/Marko DjuricaTPX IMAGES OF THE DAY Thailand: * Thai police uncover two Chinese-led online fraud rings in latest blitz against scammers * Extreme heat waves spark climate emergencies worldwide * Thailand claims Cambodia planted land mines, escalating dispute * Thai land mine claims rejected by Cambodia in escalating dispute * Survey finds Thai public blames monks' misconduct for Buddhism's decline * Thailand's condo market plummets to 16-year low Philippines: * Typhoon Wipha: Philippine govt suspends work and school classes in Metro Manila and other provinces * Philippines' Marcos to meet Trump, hoping to secure trade deal that is favourable to both allied countries * A legend returns - Pacquiao is latest boxer to risk legacy for lure of the ring * Radio journalist killed in southern Philippines * Marcos goal: A trade deal unique to US-Philippine ties * Philippines suspends government work, classes due to heavy rains A man holding an umbrella walks near docked tourist boats, as Typhoon Wipha approaches, at Halong Bay, Quang Ninh province, Vietnam, on Monday, July 21, 2025. -- Photo: REUTERS/Thinh Nguyen Vietnam: * Boy's body recovered by rescuers, death toll in Vietnam's Ha Long boat tragedy hits 36 * "It took only a few seconds": survivors recount how a sudden storm drowned dozens in Vietnam * Storm Wipha nears northern Vietnam with heavy rain, strong winds and flood risk * Vietnam, China plan first joint army drill amid US tariffs * Vietnam: Survivor lives to tell his escape from capsized tour boat Myanmar: * Comment: A cautionary tale for Asean from the Middle East * Yet another jade mine collapse in northern Myanmar, two people dead and 20 others trapped inside * Series of aftershocks rattle Mandalay, including 5.5-magnitude tremor * Fire sparked by charging Bluetooth speaker destroys eight homes in central Myanmar A trishaw driver rides as his passenger uses an umbrella to cover themselves from the rain in Yangon on Monday, July 21, 2025. -- Photo by Sai Aung MAIN / AFP Cambodia: * Hun Sen calls Thaksin out, reveals historic role in Thai politics * Landmine dispute escalates tensions between Thailand and Cambodia * Asean disaster simulation exercise begins amid Typhoon Wipha * Cambodia arrests 2,767 online scam suspects Laos: * Typhoon Wipha rips through Laos, Vietnam, and the Philippines, damaging homes and infrastructure * Laos on alert as Typhoon Wipha brings torrential rain * Laos to renegotiate power purchase deals in bid to cut bills for home-owners Brunei: * Brunei royalty graces Girl Guides ceremony * Brunei Chinese chamber of commerce holds event on traditional Chinese medicine * 35 arrested in major anti-drug operation in Brunei Artistic Swimming - World Aquatics Championships - Women's Duet Technical Final - World Aquatics Championships Arena, Singapore - Monday, July 21, 2025; Gold medallists Austria's Anna-Maria Alexandri and Eirini-Marina Alexandri pose during the women's duet technical final medal ceremony with silver medallists China's Yanhan Lin and Yanjun Lin and bronze medallists Neutral Athletes B's Mayya Doroshko and Tatiana Gayday. -- Photo: REUTERS/Hollie Adams AseanPlus: * K-pop superstar G-Dragon declares Malaysia 'mantap (superb)' at his two-day sold-out concerts in Bukit Jalil * Malaysia sets sights on regional AI leadership with 2026-2030 action plan, says Gobind * Malaysia, Asean to propose reforming UN veto power of five countries * First day of Dewan Rakyat focuses on post-Asean foreign policy, cost of haj * Sarawak to kick off reforms to make business registrations quicker, easier, Dr Sim announces * 'Musang King is too delicious': HK actor Louis Fan ate 7 durians during 3-day stay in Malaysia * Evidence shows Jeju Air pilots shut off less-damaged engine before crash, source says * Torrential rain leaves at least 18 dead in South Korea, trail of devastation * Disney sues Hong Kong company it says is selling illegal Mickey Mouse jewellery * China stops US commerce employee from leaving, reports say * Can a superalloy method fix aircraft engine woes, even for sixth-gen fighters? * As Trump flip-flops on US academia, China's brightest head back home. Here's why * Asian investors trim US assets amid weak dollar, but full pullback 'difficult' * Nvidia CEO praises China's open-source models as 'very advanced' * In rare gun crime in South Korea, father kills son; bomb found at home * Hong Kong leads stocks higher, yen gains as Ishiba vows to stay * At least 18 dead in South Korea after heavy rains and landslides * Western aid cuts cede ground to China in South-East Asia: study * South Korea reviewing various options to improve North Korea ties * At least 19 killed as Bangladesh air force plane crashes into college campus * HK singer Kelly Chen reveals she once considered retiring from music after marriage * Wreck of WWII Imperial Japanese Navy destroyer Teruzuki found 83 years after sinking * Exclusive-Trump pledged to save Afghans. But UAE had already sent some evacuees back, cable shows * Ishiba's party members urge him to take responsibility as they face poor showing in Japan's Upper House election * Airbus signs fresh deal with Chinese partner amid talk of massive China order * Trump says Beijing is making 'big steps' in controlling fentanyl * Sri Lanka Catholics seek prosecution of sacked spy chief * Australia's growing algal crisis in south devastates marine life * Israeli fire kills 67 aid seekers in Gaza, medics say, as hunger worsens * Pakistani Islamist militants use drones to target security forces, officials say * China stocks near 2022 high on construction, rare earth gains; Hang Seng tests 25,000 * Badminton - Zii Jia appears fine in first public appearance in China * Cricket - Knee injury ends Reddy's England tour, Arshdeep out of Manchester test
New Straits Times
21-07-2025
- Business
- New Straits Times
News@9: Today's top headlines - July 21, 2025 [WATCH]
On strike About 100 bus drivers staged a pre-dawn strike in Johor Baru over pay cuts, stranding thousands of commuters during peak rush hour. No show Pandan MP Datuk Seri Rafizi Ramli did not attend the Parliament sitting today, his aide confirmed. Employee probed Sunway Construction Group said one employee is being investigated by the MACC over subcontractor dealings. Consumer Credit Bill The Dewan Rakyat has passed a bill that paves the way for a new commission to regulate non-bank credit providers and protect consumers.
Malaysiakini
21-07-2025
- Business
- Malaysiakini
Buy now, pay later, if you can afford it: Dewan passes microloan law
PARLIAMENT | Companies that offer 'buy now pay later' (BNPL) schemes in Malaysia will be required to check each customer's debt capability before approving their credit facility, the Dewan Rakyat heard today. Deputy Finance Minister Lim Hui Ying said the requirement would be imposed under the Consumer Credit Bill, which has been passed by the August House this evening.
