11th March 2025 - 2 min read
Local consumer transactions through ‘buy now, pay later’ (BNPL) services saw a significant rise in the second half of 2024, reaching RM7.1 billion, an increase from RM4.9 billion in the first half, according to Finance Minister II, Datuk Seri Amir Hamzah Azizan.
As of December 2024, the country had 5.1 million active BNPL users, the majority of whom were aged between 21 and 45 and earning less than RM5,000 per month. A total of twelve companies were providing BNPL services at the time.
Amir Hamzah acknowledged concerns regarding the impact of BNPL on household debt levels but emphasised that the overall increase in transactions remained within manageable limits.
As of December 2024, BNPL loans amounted to RM2.8 billion, representing only 0.2% of total household debt in Malaysia. Outstanding BNPL loans stood at RM82.6 million, accounting for 2.9% of total BNPL credit, he said.
He made these remarks during a question-and-answer session at the Dewan Negara in response to a query from Senator Musoddak Ahmad regarding efforts to regulate credit-granting agencies, including BNPL providers.
Amir Hamzah stated that the Ministry of Finance had tabled the first reading of the Consumer Credit Bill in the Dewan Rakyat on 4 March as part of the government’s broader initiative to strengthen consumer protection in the credit sector. The proposed legislation aims to establish a comprehensive regulatory framework for non-bank credit providers.
Under the Consumer Credit Act, BNPL providers would be required to comply with ethical and conduct standards, ensuring transparency in fees and charges, fair credit terms, and regular payment reminders for borrowers. If enacted, the Act would be overseen by a newly established regulatory body, the Consumer Credit Commission, operating under the Ministry of Finance.
(Source: Bernama)
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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