The Dewan Rakyat has passed the Consumer Credit Bill 2025, paving the way for enhanced regulation of non-bank credit and service providers in Malaysia, including buy-now-pay-later (BNPL) operators.
According to The Star, the bill was passed via a voice vote in Parliament today (21 July).
Its approval sets the groundwork for the formation of the Consumer Credit Commission (CCC), a statutory body under the Finance Ministry that will oversee credit entities not currently under formal supervision.
The CCC will introduce a licensing and registration regime for these providers, along with mandatory financial assessments to determine a borrower’s ability to repay before any credit is granted.
This is part of broader efforts to reduce over-indebtedness and improve consumer protection.
Deputy Finance Minister Lim Hui Ying said the commission will also require BNPL providers to clearly disclose all relevant credit information to consumers, such as repayment terms, fees, and other charges.
These providers must additionally report consumer credit data to agencies like CTOS through a centralised data platform.
She added that a recent survey by the Consumer Credit Oversight Board (CCOB) involving 21,000 users found that 88% paid their BNPL debts on time.
Around 12% had overdue payments but remained capable of repayment, while fewer than 1% were unable to meet their obligations.
The same survey showed that 70% of BNPL users had monthly incomes under RM5,000, reflecting the popularity of such services among lower-income consumers.
According to Bernama, BNPL usage has been rising steadily. Transaction volumes climbed to 102.6 million in the first half of 2025, up from 83.8 million in the second half of 2024.
Total transaction value rose by 31%, from RM7.1 billion to RM9.3 billion during the same period.
Meanwhile, the number of active BNPL accounts increased from 5.1 million at the end of last year to 6.5 million by June 2025.
As of end-June, there were 16 BNPL providers operating in Malaysia, with Shopee SPayLater, Atome, and GrabPayLater accounting for over 95% of market share.
Four Shariah-compliant options are also available: SPayLater, Boost PayFlex, Moby Islamic, and Du-it.
Lim stated that no credit ceilings will be implemented during the initial phase, though data collection will inform future decisions on appropriate limits.
The CCC is expected to collaborate with the Credit Counselling and Debt Management Agency (AKPK) to raise financial literacy and help consumers manage debt more effectively.
The first and second phases of the commission’s rollout are not expected to involve any additional government spending.
Featured image: Edited by Fintech News Malaysia, based on images by Supertramp and rawpixel.com via Freepik
