24th February 2023 - 2 min read
The government will proceed with the enactment of the Consumer Credit Act (CCA), as well as set up the Consumer Credit Oversight Board (CCOB) within this year to monitor buy-now-pay-later (BNPL) services that are offered to the public, said Prime Minister Datuk Seri Anwar Ibrahim in the re-tabling of Budget 2023 today.
According to Datuk Seri Anwar, the new act will enable the government to regulate businesses that provide such credit services and to better protect the rights of those who tap into the schemes.
BNPL schemes became popular over the course of the past two years – specifically during Covid-19 – due to their easy approval process and flexibility, especially during a time when people needed urgent help with cash flow. However, these schemes do not fall under the purview of any authorities, which means those who tap into them are not properly protected.
As such, Bank Negara Malaysia (BNM) and the government have both been pushing for the enactment of the Consumer Credit Act (CCA) since last year. That said, it should be highlighted as well that the significance of CCA’s enactment extends beyond just regulating BNPL players; it also offers necessary updates to Malaysia’s existing financial regulatory framework, offering better protection to credit consumers in general.
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