BNPL loans total RM4.2 billion with RM147.7 mil overdue, as new Consumer Credit Act 2025 aims to regulate the sector
KUALA LUMPUR: The total value of buy now, pay later (BNPL) scheme loans in Malaysia reached RM4.2 billion as of September 30, 2025.
Deputy Finance Minister Lim Hui Ying said the amount covered seven million active account holders, representing 0.3% of total household indebtedness.
She stated that unpaid or overdue BNPL loans amounted to RM147.7 million, which is 3.5% of the total BNPL loan portfolio.
“For the same period, there were 185,465 BNPL account holders with unpaid balances,” Lim said in a parliamentary reply.
She was responding to a question from Datuk Seri Jalaluddin Alias (BN-Jelebu) on government steps to control e-commerce credit purchases.
Lim also provided figures for credit card debt, which totalled RM50.7 billion as of September 2025.
The unpaid or outstanding amount for credit and charge cards was RM551.8 million, or 1.1% of the total.
“Credit cards and charge cards offer payment flexibility to consumers if they are able to manage their debts prudently,” she said.
She noted these cards remain a primary instrument for consumer financing on e-commerce platforms.
The government is taking proactive steps to address credit purchases that may increase household debt.
Lim said policies ensure credit lenders remain prudent in their lending activities.
“This step is important in addressing the risk of debt beyond their means,” she added.
She highlighted the Consumer Credit Act 2025 (CCA) as a key government initiative.
The CCA is expected to come into effect by the end of this year to control BNPL use.
“Through the CCA, non-bank credit providers such as BNPL companies are required to comply with the requirements of responsible credit granting,” Lim stated.
This includes conducting creditworthiness and affordability assessments before offering financing.
The act also ensures fair transaction terms and transparent, reasonable fees.
It mandates prudent debt collection procedures to protect credit users. – Bernama
