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Barnama
a day ago
- Business
- Barnama
Govt Urged To Set Up Credit Scoring Agency To Regulate Eligibility Of Borrowers
BUSINESS KUALA LUMPUR, July 21 (Bernama) -- The government should establish a creditworthiness or credit scoring agency to regulate the eligibility of consumers taking loans, according to Member of Parliament (MP) Sim Tze Tzin (PH-Bayan Baru). He said that with transparent creditworthiness, it can help reduce consumers' financial pressure as well as reduce borrowing money from unlicensed money lenders or syndicates. 'Although in Malaysia we have credit reporting companies such as CTOS, the average citizen does not understand credit scores and does not know his/her own credit scores. "Hence, a transparent creditworthiness or credit score can determine good borrower discipline and be offered other financial facilities such as credit cards, personal loans and others," he said when debating the Consumer Credit Bill (RUUKP) 2025 during its second reading at the Dewan Rakyat here today. Meanwhile, MP Rodiyah Sapiee (PH-Batang Sadong) proposed that the government establish a special 'Buy Now, Pay Later' (BNPL) data centre to ensure the effectiveness of the micro-instrument is maintained. 'All information related to BNPL is collected in a special data centre which is not combined or reported in conventional credit systems such as the Central Credit Reference Information System (CCRIS). 'This is because CCRIS is directly linked to large loan eligibility such as housing and vehicle loans, and if BNPL is included in this system, it could affect the opportunities of low-income consumers to obtain future financing,' he said. He also said that this special data centre could be established under the Consumer Credit Commission to enable specific monitoring of BNPL's credit risk including consumer exposure limits and payment behaviour without disrupting key financial records. -- BERNAMA
The Sun
a day ago
- Business
- The Sun
Govt urged to set up credit scoring agency to regulate eligibility of borrowers
KUALA LUMPUR: The government should establish a creditworthiness or credit scoring agency to regulate the eligibility of consumers taking loans, according to Member of Parliament (MP) Sim Tze Zin (PH-Bayan Baru). He said that with transparent creditworthiness, it can help reduce consumers' financial pressure as well as reduce borrowing money from unlicensed money lenders or syndicates. 'Although in Malaysia we have credit reporting companies such as CTOS, the average citizen does not understand credit scores and does not know his/her own credit scores. 'Hence, a transparent creditworthiness or credit score can determine good borrower discipline and be offered other financial facilities such as credit cards, personal loans and others,' he said when debating the Consumer Credit Bill (RUUKP) 2025 during its second reading at the Dewan Rakyat here today. Meanwhile, MP Rodiyah Sapiee (PH-Batang Sadong) proposed that the government establish a special 'Buy Now, Pay Later' (BNPL) data centre to ensure the effectiveness of the micro-instrument is maintained. 'All information related to BNPL is collected in a special data centre which is not combined or reported in conventional credit systems such as the Central Credit Reference Information System (CCRIS). 'This is because CCRIS is directly linked to large loan eligibility such as housing and vehicle loans, and if BNPL is included in this system, it could affect the opportunities of low-income consumers to obtain future financing,' he said. He also said that this special data centre could be established under the Consumer Credit Commission to enable specific monitoring of BNPL's credit risk including consumer exposure limits and payment behaviour without disrupting key financial records. – Bernama
New Straits Times
a day ago
- Business
- New Straits Times
MPs call for separate BNPL data centre, stricter advertising rules
KUALA LUMPUR: Batang Sadong member of parliament Rodiyah Sapiee has proposed the establishment of a dedicated data centre for Buy Now, Pay Later (BNPL) services that is separate from Bank Negara Malaysia's Central Credit Reference Information System (CCRIS). The move, she said, would allow data related to BNPL to be housed in a standalone database, instead of being integrated into conventional credit systems such as CCRIS. "CCRIS is linked to major credit facilities such as housing or car loans. If BNPL data is included in this system, it could negatively affect the ability of low-income users to secure future financing," she said when debating the Consumer Credit Bill 2025 in the Dewan Rakyat. She said the BNPL data centre could be placed under the Consumer Credit Commission to enable monitoring of BNPL transactions and credit risks, without disrupting users' primary credit and repayment records. "This will preserve the effectiveness of BNPL as a microcredit instrument," she said. Meanwhile, Bachok MP Mohd Syahir Che Sulaiman called for BNPL promotions and advertisements not to be misleading, such as using phrases like "interest-free", "easy approval", or "buy now, think later". "Risk disclosures should be mandatory in all promotional materials." He said mandatory disclosure of information must also include payment simulations and explanations of late payment penalties before users sign any agreement. "The creditworthiness assessments must be tightened, especially regarding income verification. Today, even university students are increasingly trapped in outstanding BNPL debt." He said support for consumers facing financial hardship must be clearly outlined, including rescheduling of payments, moratoriums, and automatic referrals to the Credit Counselling and Debt Management Agency in critical cases. "These key points are essential to ensure that the Act, if passed, provides a balanced approach between credit accessibility and consumer protection, particularly for young people and low-income groups who are most vulnerable to financial risks." Earlier, Deputy Finance Minister Lim Hui Ying tabled the Consumer Credit Bill 2025 for its second reading. Twenty-three members of parliament are set to take part in the debate. The Consumer Credit Bill 2025 aims to strengthen consumer protection by regulating the credit industry in Malaysia, including overseeing the BNPL scheme.
Daily Express
a day ago
- Business
- Daily Express
MP moots special data centre to monitor ‘buy now, pay later' transactions
Published on: Monday, July 21, 2025 Published on: Mon, Jul 21, 2025 By: Shermaine Choe, Minderjeet Kaur, FMT Text Size: A recent survey by Shopee's BNPL service SPayLater found that 81% of 40,000 Malaysian users relied on BNPL for basic needs. (Rawpixel pic) Kuala Lumpur: A Sarawak MP has urged the government to set up a dedicated data centre to monitor transactions under the 'buy now, pay later' (BNPL) scheme, separate from traditional credit reporting systems. Rodiyah Sapiee (GPS–Batang Sadong) said BNPL data should be excluded from the Central Credit Reference Information System (CCRIS), which is used to assess major loan applications such as for housing and vehicle financing. Advertisement 'CCRIS is directly related to major loan eligibility such as for housing or vehicle financing, and if BNPL data is included, it could negatively impact the ability of lower-income users to obtain future financing,' she told the Dewan Rakyat when debating the Consumer Credit Bill 2025. Instead, Rodiyah proposed the creation of a dedicated BNPL data centre under the Consumer Credit Commission (SKP) which would allow targeted monitoring of BNPL credit risks without affecting users' primary credit histories. 'This will preserve BNPL's effectiveness as a microcredit instrument and a symbol of hope,' she added. Rodiyah cited a recent survey by Shopee's BNPL service SPayLater, which found that 81% of 40,000 Malaysian users relied on BNPL for basic needs, including baby formula and to pay medical expenses. 'This proves that BNPL is not just a financial convenience, but also functions as a micro social safety net during emergencies,' she said. She also suggested that the bill consider financial commitments at the household rather than the individual level. 'While BNPL limits are typically capped at RM2,000 or RM3,000 per person, in reality, a household may have several BNPL accounts that together exceed the family's actual financial capacity. In the end, the burden falls on the head of the household,' she said. Rodiyah also proposed giving BNPL exemptions to micro-businesses, which typically use the service as working capital to acquire short-term inventories. Deputy finance minister Lim Hui Ying earlier tabled the Consumer Credit Bill 2025 for second reading at the lower house. Lim said the bill had been drafted to regulate emerging credit providers such as BNPL companies, with the number of transactions increasing from 83.8 million in the second half of 2024 to 102.6 million in the first half of this year. The total transaction value of BNPL rose from RM7.1 billion in the second half of last year to RM9.3 billion in the first half of this year, an increase of 31%, she said. 'This rapid growth in BNPL may pose risks of harm, especially to vulnerable credit users,' she said. Under the bill, a statutory body known as the SKP will be created to regulate currently unregulated business sectors through a licensing and registration framework to protect those with loans not exceeding RM300,000. * 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
14-06-2025
- Business
- New Straits Times
Op Sky: MHO calls for wider probe into RM8.47mil civil servant investment scam
KUALA Lumpur: The Malaysian International Humanitarian Organisation (MHO) has called for a cross-agency investigation into a financial investment syndicate that allegedly deceived civil servants through a scheme known as "Refresh and Reload". The case is being investigated as part of the Malaysian Anti-Corruption Commission's (MACC) Op Sky, launched earlier this year, which involves a syndicate accused of corruption and money laundering. This syndicate was reportedly run by a financial consultancy company in collaboration with several bank officers. MHO secretary-general Datuk Hishamuddin Hashim said the organisation is representing 24 complainants, comprising doctors, teachers and administrators, who collectively suffered losses amounting to RM8.47 million. He said the scheme promised debt settlement services, including clearing borrowers' CCRIS (Central Credit Reference Information System) records, and offered the possibility of applying for loans from four financial institutions simultaneously. "The scheme was operated by two private companies together with a registered association that introduced themselves as financial consultants and former bank officers during closed-door briefings for selected civil servants. "They came with complete documentation and spoke under the name of a financial management organisation. "The desperate victims believed this was a legitimate solution to their mounting debts," he said at a press conference today. Hishamuddin said the victims were guided to simultaneously apply for loans from four banks and added to WhatsApp groups managed by scheme agents who trained them on how to communicate with bank representatives. "Once the loans were approved, the victims were instructed to transfer the funds to the syndicate's account under the pretext of settling existing debts, paying company fees and reinvesting the money to generate monthly loan repayments. "However, after payments were made, the company failed to deliver on its promises, leaving victims burdened with increased financial obligations and legal action from the banks," he said. He said some victims were forced to repay as much as RM12,000 monthly despite earning around RM6,000, while others have received bankruptcy notices. "They were systematically deceived. "Hidden deductions of up to 40 per cent were made without prior explanation, and some were even charged an additional RM10,000 for a so-called vehicle ownership scheme," he said. Hishamuddin said the MACC had previously investigated the matter under Section 23 of the MACC Act, but MHO believes this is insufficient. The MACC had earlier revealed the syndicate's modus operandi, involving simultaneous applications for multiple high-value personal loans backed by fraudulent representations made by financial consultants. Emerging during the Covid-19 pandemic, the syndicate reportedly targeted debt-laden civil servants desperate for financial relief, luring them with promises of credit recovery and short-term investment opportunities. The MACC reported that loans amounting to RM700 million were approved for participants of the scheme, with over RM22 million frozen across 98 companies and individual accounts. As a result, many civil servants are said to be experiencing severe financial stress, some blacklisted by financial institutions and others having received bankruptcy notices. Hishamuddin said the case contains multiple criminal elements and investigations should be expanded to include Sections 420, 403 and 405 of the Penal Code, covering fraud, criminal breach of trust and misappropriation. "Collecting investment funds without an approved prospectus from the Securities Commission violates the Capital Markets and Services Act and the Financial Services Act for unlicensed deposit-taking. "In addition, the fixed-payment vehicle ownership scheme offered to participants was not registered with the Registrar of Interest Schemes as required under Section 3(2) of the Interest Schemes Act."
