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
