Latest news with #RM9.3
The Star
2 days ago
- Business
- The Star
'Buy now, pay later' transactions hit 102.6 million in 1H25
KUALA LUMPUR: The volume of "buy now, pay later' (BNPL) transactions has increased from 83.8 million in the second half (2H) of 2024 to 102.6 million in the first half (1H) of this year. Deputy Finance Minister Lim Hui Ying said the surge in BNPL transactions exposes consumers to risks, especially those in the low-income group and with poor financial literacy to the risk of unmanageable debts. The total value of BNPL transactions rose 31 per cent from RM7.1 billion in 2H 2024 to RM9.3 billion in 1H 2025. Meanwhile, the number of active BNPL accounts also increased from 5.1 million at the end of last year to 6.5 million as of end-June this year. "To address this issue in protecting the interests of credit consumers, a statutory body known as the Consumer Credit Commission (SKP) will be established under the Consumer Credit Act,' Lim said when tabling the Consumer Credit Bill 2025 for the second reading in the Dewan Rakyat today. She said the commission, which will come under the Ministry of Finance, will regulate business sectors that are currently not regulated by any party via a licensing and registration framework. Lim said the Consumer Credit Bill is tabled as part of the government's effort to establish comprehensive legislation to protect credit consumers and restructure the nation's credit industry landscape. The bill was drafted to tackle two main issues: the presence of unregulated industry players and inconsistencies in credit sector oversight 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. According to Lim, the bill outlines the responsibilities of the SKP, including advising the government on national consumer credit policy; promoting fair, professional, and responsible practices; and licensing based on the "fit and proper' principle. "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. Lim tabled the bill for its first reading in the Dewan Rakyat on March 4. - Bernama
Sinar Daily
2 days ago
- Business
- Sinar Daily
BNPL transactions hit 102.6 million in 1H 2025
The surge in BNPL transactions exposes consumers to risks, especially those in the low-income group and with poor financial literacy to the risk of unmanageable debts. 21 Jul 2025 03:12pm The volume of "buy now, pay later' (BNPL) transactions has increased from 83.8 million in the second half (2H) of 2024 to 102.6 million in the first half (1H) of this year. - Photo illustrated by Sinar Daily KUALA LUMPUR - The volume of "buy now, pay later' (BNPL) transactions has increased from 83.8 million in the second half (2H) of 2024 to 102.6 million in the first half (1H) of this year. Deputy Finance Minister Lim Hui Ying said the surge in BNPL transactions exposes consumers to risks, especially those in the low-income group and with poor financial literacy to the risk of unmanageable debts. The total value of BNPL transactions rose 31 per cent from RM7.1 billion in 2H 2024 to RM9.3 billion in 1H 2025. Meanwhile, the number of active BNPL accounts also increased from 5.1 million at the end of last year to 6.5 million as of end-June this year. "To address this issue in protecting the interests of credit consumers, a statutory body known as the Consumer Credit Commission (SKP) will be established under the Consumer Credit Act,' Lim said when tabling the Consumer Credit Bill 2025 for the second reading in the Dewan Rakyat today. She said the commission, which will come under the Ministry of Finance, will regulate business sectors that are currently not regulated by any party via a licensing and registration framework. Lim said the Consumer Credit Bill is tabled as part of the government's effort to establish comprehensive legislation to protect credit consumers and restructure the nation's credit industry landscape. The bill was drafted to tackle two main issues: the presence of unregulated industry players and inconsistencies in credit sector oversight 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. According to Lim, the bill outlines the responsibilities of the SKP, including advising the government on national consumer credit policy; promoting fair, professional, and responsible practices; and licensing based on the "fit and proper' principle. "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. Lim tabled the bill for its first reading in the Dewan Rakyat on March 4. - BERNAMA More Like This
The Sun
2 days ago
- Business
- The Sun
BNPL transactions surge to 102.6 million in 1H 2025
KUALA LUMPUR: The volume of 'buy now, pay later' (BNPL) transactions in Malaysia surged to 102.6 million in the first half of 2025, up from 83.8 million in the second half of 2024. Deputy Finance Minister Lim Hui Ying highlighted concerns over rising consumer risks, particularly among low-income groups with limited financial literacy. The total value of BNPL transactions increased by 31 per cent, reaching RM9.3 billion in 1H 2025 compared to RM7.1 billion in 2H 2024. Active BNPL accounts also rose from 5.1 million at the end of 2024 to 6.5 million by June 2025. To address these risks, the government is establishing the Consumer Credit Commission (SKP) under the Consumer Credit Act. Lim stated, 'The commission will regulate currently unregulated sectors through a licensing and registration framework.' The Consumer Credit Bill 2025 aims to protect consumers by ensuring responsible lending practices and promoting a fair credit industry. Lim added, 'This bill reflects the government's commitment to a safer credit ecosystem.' - Bernama
BusinessToday
2 days ago
- Business
- BusinessToday
BNPL Soars Past RM9 Billion, Govt Moves To Curb Credit Risks With New Bill
The number of 'buy now, pay later' (BNPL) transactions in Malaysia surged to 102.6 million in the first half of this year, up from 83.8 million in the second half of 2024, marking a sharp rise in consumer uptake of the credit payment method. 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
New Straits Times
2 days ago
- Business
- New Straits Times
BNPL transactions surge by 18.8 million in first half 2025
KUALA LUMPUR: The total number of Buy Now Pay Later (BNPL) transactions has increased by 18.8 million in the first half of 2025, rising from 83.8 million in the second half of 2024 to 102.6 million transactions, the Dewan Rakyat was told today. Deputy Finance Minister Lim Hui Ying said over the same period, the total value of BNPL transactions rose from RM7.1 billion to RM9.3 billion, representing a 31 per cent increase. "Meanwhile, the number of active BNPL accounts grew from 5.1 million at the end of 2024 to 6.5 million at the end of June this year. "The significant growth of BNPL poses potential risks of harm, particularly to vulnerable credit users, namely, individuals without a stable income, those with low earnings, or those who lack financial literacy," she said during the second reading of the Consumer Credit Bill 2025 in the Dewan Rakyat. Following concerns on the conduct or practices of debt collectors who use force and resort to excessive harassment of credit users, Lim said a statutory body known as the Consumer Credit Commission (CCC) will be established under the act. She added that the commission will also regulate business sectors that are currently unregulated by any authority, through a licensing and registration framework to be implemented under the act. Lim also said the commission will be established as a regulatory body under the Finance Ministry. "Various complaints have also been received regarding the conduct or practices of debt collectors who use force and resort to excessive harassment of credit users. "Complaints have also been lodged against individuals who present themselves as intermediaries or assistants in managing debt, but in reality, exploit the situation for personal gain through manipulation or fraud. There have been growing calls for these individuals to also be regulated," she said. She added that there will be six business sectors that will be regulated under the act, which will be segregated into two categories. The first category, she said, comprises three types of credit businesses that will require a licence from the CCC. They include BNPL schemes, leasing, and factoring, including those that are Shariah-compliant. The second category, meanwhile, covers three types of credit service businesses that must be registered, which are debt collection, acquisition of non-performing loans or financing, and debt counselling and management. "In line with the government's whole-of-government approach, the act will also provide for two types of credit businesses that will require a licence from the Housing and Local Government Ministry, which are Shariah-compliant financing facilities and Shariah-compliant pawnbroking, also known as Ar-Rahnu," she said. She added that the bill, once passed, will serve as an umbrella legislation and empower the commission and other regulatory and supervisory authorities, namely the Housing and Local Government Ministry, the Domestic Trade and Cost of Living Ministry, Bank Negara Malaysia, Securities Commission and the Malaysia Co-operative Societies Commission to regulate their respective segments of the credit industry. She added that this was because Malaysia's consumer credit landscape currently operates under a fragmented regulatory framework, which has led to uneven levels of oversight for non-bank credit providers, as well as inconsistent and insufficient protection standards for credit consumers. "The lack of uniform safeguards across the credit sector has left many consumers vulnerable to unfair and exploitative practices. "Many credit users are uncertain about which authority to approach to lodge complaints under the existing legal framework. "This inconsistency arises from the lack of harmonisation in standards and rules governing consumer credit protection."
