TMR

KUALA LUMPUR — Buy Now, Pay Later (BNPL) facilities remain under control, but regulatory measures are being strengthened to protect consumers through the Consumer Credit Act 2025 (CCA).

Second Finance Minister Datuk Seri Amir Hamzah Azizan (picture) said the latest statistics revealed that 102.6 million BNPL transactions worth RM9.3 billion were recorded in the first half of this year, an increase of 3.1 per cent compared to RM7.1 billion in the second half of last year.

He said that the total BNPL loans as of June 30, 2025, amounted to RM3.8 billion, which is only 0.2 per cent of the total household debt in the country.

“The current amount of unpaid or overdue BNPL loans is under control, standing at RM121.8 million or 3.2 per cent of the total BNPL loans.

“BNPL is still under control, and with the new (CCA 2025) act approved, we will further enhance regulation in this sector to ensure better control in the future.

“So, in my view, at present, we have sufficient oversight regarding BNPL schemes,” he told the Dewan Rakyat during today’s question-and-answer session.

He was responding to a supplementary question from Datuk Awang Hashim (PN-Pendang), who inquired whether the government is prepared to classify certain BNPL schemes as credit risks for society and impose usage limits on specific products such as staple foods or household necessities to prevent debts from multiplying.

Meanwhile, Amir Hamzah said the newly established Consumer Credit Commission (CCC), which will regulate the current developments in the credit industry sector, including BNPL, is currently studying interest rate caps imposed by providers of these facilities on credit users, while also considering Shariah-compliant mechanisms.

“In this matter, the CCC will take a regulatory approach that is balanced and proportionate,” he said in response to a supplementary question from Young Syefura Othman (PH-Bentong), who asked whether the CCC plans to impose interest rate caps and the ministry’s steps to ensure BNPL providers comply with Shariah principles.

Amir Hamzah said currently, some BNPL providers charge interest rates generally at 1.5 per cent per month or about 18 per cent per annum.

“Generally, BNPL industry players charge interest rates ranging from 15 to 30 per cent per annum. Meanwhile, there are also BNPL providers who do not charge any interest fees.

“The CCC will gather comprehensive information and analyse the best way to regulate this matter,” he said.

Under the CCA, companies offering BNPL schemes will be required to comply with responsible credit conduct and lending practices to protect credit consumers.

“Regarding this, assessing debt repayment ability is an essential requirement that BNPL companies must adhere to before offering credit.

“This is necessary so that borrowers, including the younger generation, can repay their debts without facing serious financial stress and eventually falling into a debt trap,” he said.

Amir Hamzah added that the government also emphasised the importance of financial literacy so that citizens can manage their finances wisely and understand the risks of excessive BNPL usage to avoid the burden of uncontrolled debt. — BERNAMA

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