BNPL Soars Past RM9 Billion, Govt Moves To Curb Credit Risks With New Bill
Alongside the spike in transaction volume, the total value of BNPL deals grew 31%, from RM7.1 billion in 2H 2024 to RM9.3 billion in 1H 2025. The number of active BNPL accounts also jumped significantly, from 5.1 million at the end of last year to 6.5 million by the end of June.
In light of the soaring figures, Deputy Finance Minister Lim Hui Ying cautioned that such a trend could expose vulnerable segments of the population to excessive and unmanageable debt.
'The surge in BNPL transactions exposes consumers, especially those in the low-income group and with poor financial literacy, to the risk of unmanageable debts,' she said during the second reading of the Consumer Credit Bill 2025 in the Dewan Rakyat today.
To safeguard consumers and reform the fragmented credit landscape, Lim announced the establishment of a statutory body known as the Consumer Credit Commission (SKP) under the Consumer Credit Act. The SKP will be tasked with licensing and regulating currently unregulated credit business sectors.
Lim emphasised that the bill was designed to address two major issues: the presence of unregulated players in the credit industry and inconsistencies in supervision 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.
Among the key responsibilities of the SKP will be to advise the government on national consumer credit policy, uphold professional and responsible conduct within the sector, and issue licences based on the 'fit and proper' criteria.
'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.
The bill was initially tabled for its first reading in the Dewan Rakyat on March 4. Related
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