Latest news with #ConsumerCreditBill2025
BusinessToday
12 hours ago
- Business
- BusinessToday
Parliament Passes Consumer Credit Bill 2025
The Consumer Credit Bill 2025 has been officially passed by Parliament, marking a major step forward in safeguarding borrowers and regulating Malaysia's rapidly growing consumer credit industry. Announcing the development, Deputy Finance Minister Lim Hui Ying said the legislation establishes a robust legal framework to oversee non-bank credit providers and curb unethical lending practices. 'With the passing of this Bill, Malaysia is reinforcing its commitment to consumer protection and financial governance. This is a vital reform to ensure fair, responsible and transparent credit practices, especially for vulnerable groups,' she said. She shared that the newly passed law will mandate licensing and regulation of all non-bank credit providers, establish the Consumer Credit Oversight Board as the central regulatory authority, standardise lending practices and consumer protection measures across the sector, and strengthen dispute resolution mechanisms for credit-related issues. Lim highlighted that the Bill was driven by increasing public concern over unregulated credit providers and rising household debt. By formalising oversight and regulation, consumer confidence will be restored and a healthier financial ecosystem can be promoted. The Bill is expected to gazetted later this year, with implementation to be done in stages. Related
Barnama
a day ago
- Business
- Barnama
Consumer Credit Bill 2025 Passed, Regulating Commission To Be Set Up
BUSINESS KUALA LUMPUR, July 21 (Bernama) -- The Consumer Credit Bill 2025 was passed in the Dewan Rakyat today to protect the interests of credit consumers in the country. Deputy Finance Minister Lim Hui Ying said the bill was enacted to address significant gaps in the unregulated industry, particularly businesses that target vulnerable credit consumers who are susceptible to exploitation. The bill also aims to standardise the regulatory framework in the currently diverse consumer credit landscape in Malaysia. The bill was unanimously approved after debate by 24 members of parliament. Under the Consumer Credit Act 2025, the Consumer Credit Commission (CCC) will be established to regulate credit businesses that currently operate without a licence or specific monitoring. 'The Consumer Credit Act 2025 will be framed as a master act that is complementary to existing acts under the administration of authorities, regulators and supervisors, and does not duplicate the functions or roles of existing ministries and agencies. 'This includes the Ministry of Housing and Local Government (KPKT), the Ministry of Domestic Trade and Cost of Living (KPDN), the Malaysia Cooperatives Commission, Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC)," she said when winding up the debate. She explained that the integrated regulatory approach will be implemented in phases by taking into account the readiness of the industry and the capabilities of the CCC which will be enhanced from phase to phase. For Phase 1 preparations, she said, KPKT as the regulatory and supervisory authority will ensure that licensed money lenders comply with the aspects of credit consumer protection introduced through the act.
Malaysian Reserve
a day ago
- Business
- Malaysian Reserve
Consumer Credit Bill 2025 passed, regulating commission to be set up
KUALA LUMPUR — The Consumer Credit Bill 2025 was passed in the Dewan Rakyat today to protect the interests of credit consumers in the country. Deputy Finance Minister Lim Hui Ying said the bill was enacted to address significant gaps in the unregulated industry, particularly businesses that target vulnerable credit consumers who are susceptible to exploitation. The bill also aims to standardise the regulatory framework in the currently diverse consumer credit landscape in Malaysia. The bill was unanimously approved after debate by 24 members of parliament. Under the Consumer Credit Act 2025, the Consumer Credit Commission (CCC) will be established to regulate credit businesses that currently operate without a licence or specific monitoring. 'The Consumer Credit Act 2025 will be framed as a master act that is complementary to existing acts under the administration of authorities, regulators and supervisors, and does not duplicate the functions or roles of existing ministries and agencies. 'This includes the Ministry of Housing and Local Government (KPKT), the Ministry of Domestic Trade and Cost of Living (KPDN), the Malaysia Cooperatives Commission, Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC),' she said when winding up the debate. She explained that the integrated regulatory approach will be implemented in phases by taking into account the readiness of the industry and the capabilities of the CCC which will be enhanced from phase to phase. For Phase 1 preparations, she said, KPKT as the regulatory and supervisory authority will ensure that licensed money lenders comply with the aspects of credit consumer protection introduced through the act. With the enactment of the act, KPKT will receive an additional legal mandate to regulate syariah-compliant businesses for both sectors, namely the regulation of loans with pawnshops. KPDN will also amend several provisions in the Hire Purchase Act 1967 to strengthen consumer protection and modernise existing provisions. Commenting on the maximum interest rate charged by credit businesses, Lim explained that the government will not set any interest rate cap in phase 1. 'We will not set (interest rates) in phase 1… however, we must collect data in phase 1 and 2,' she said. In phase 2, which is expected to start in 2028, the regulatory functions currently held by the KPKT and KPDN will be transferred to the CCC. This includes money lending, pawnshop business, hire purchase and credit sales activities. Meanwhile, phase 3, targeted to begin in 2031, will focus on the regulatory consolidation of all consumer financial activities under one centralised entity after a comprehensive review by the government. — BERNAMA
The Sun
a day ago
- Business
- The Sun
New BNPL regulations in Malaysia to prevent debt traps
KUALA LUMPUR: The Consumer Credit Commission (CCC) is set to enforce a new regulatory framework for Buy Now, Pay Later (BNPL) schemes to safeguard consumers from excessive debt and potential bankruptcy. Deputy Finance Minister Lim Hui Ying announced the measures during the second reading of the Consumer Credit Bill 2025 in the Dewan Rakyat. Under the upcoming rules, BNPL providers must conduct debt affordability assessments before approving loans. 'This assessment ensures borrowers can repay without severe financial strain,' Lim said. The CCC will monitor compliance, ensuring companies adhere to these checks. Currently, most BNPL loans remain below bankruptcy thresholds. Transparency is another key focus. Providers must clearly disclose fees and credit terms before offering services. 'Consumers deserve full awareness of their financial commitments,' Lim added. The government also plans to enhance financial literacy to help users make informed decisions. Malaysia's BNPL market is growing fast, with 16 active providers. SPay Later, Atome, and GrabPay Later dominate, holding over 95 per cent of the market. The new regulations aim to balance industry growth with consumer protection. – Bernama
New Straits Times
a day ago
- Business
- New Straits Times
Dewan Rakyat passes Consumer Credit Bill to protect credit consumers
KUALA LUMPUR: The Consumer Credit Bill 2025, aimed at safeguarding the interests of credit consumers in the country, has been passed by the Dewan Rakyat. The bill, which was tabled for its second and third readings by Deputy Finance Minister Lim Hui Ying today, was debated by 23 lawmakers. Lim said that once gazetted, the bill will introduce integrated regulations in phases, taking into consideration the industry's level of preparedness and the growing capacity of the Consumer Credit Commission, which will be gradually strengthened throughout each phase. She added that the commission will also assume regulatory responsibilities in stages, starting with currently unregulated credit providers, with full centralisation of oversight expected by 2031. "In Phase 1, the commission will regulate all credit businesses and credit service providers not currently under the purview of any authority. "However, Syariah-compliant financing facilities and Shariah-compliant pawnbroking activities will continue to be regulated by the Housing and Local Government Ministry (KPKT). "This will be followed by Phase 2, which involves the transfer of regulatory responsibilities for certain credit activities, such as moneylending and pawnbroking currently under KPKT, as well as hire purchase and credit sales currently under the Domestic Trade and Cost of Living Ministry. This phase is expected to commence in 2028," she said. Phase 3 is expected to commence in 2031, with the aim of centralising behavioural regulation across all financial market activities in Malaysia, subject to a comprehensive review by the government. "This phased approach is designed to ensure that the regulatory transformation of the consumer credit industry, and the transition process itself, proceeds in an orderly manner to minimise implementation risks. "At the same time, it enables the commission to build its capacity and capabilities to effectively take on greater responsibilities," she said. Earlier, Lim said the commission will be established as a regulatory body under the Finance Ministry and will regulate business sectors currently unregulated by any authority, through a licensing and registration framework to be implemented under the act.
