Buy Now, Pay Later (BNPL) providers will soon be required to conduct affordability assessments before granting credit, in line with reforms under the upcoming Consumer Credit Act 2025 (CCA).
Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat yesterday that the move aims to encourage responsible lending practices and prevent borrowers from falling into unsustainable debt.
BNPL transactions in Malaysia have already reached RM7.1 billion.
“Assessing a borrower’s repayment capacity will be a mandatory requirement for BNPL providers before extending credit. This ensures that borrowers can meet their obligations without experiencing significant financial strain,” Amir Hamzah said in response to a question from Young Syefura Othman (PH–Bentong).
He added that the Consumer Credit Commission (CCC) would oversee compliance, with the authority to take regulatory or enforcement action against providers that breach the rules. This could include administrative measures, civil or criminal proceedings, or compound offers.
According to him, the CCC’s supervisory framework prioritises consumer protection, focusing on fair treatment, transparency and the cultivation of a responsible credit market. The government will also continue promoting financial literacy to help Malaysians make informed financial decisions and reduce dependence on BNPL schemes.
Separately, Amir Hamzah, who is also acting economy minister, said the first targeted use of the Central Database Hub (Padu) would be for implementing RON95 petrol subsidies, ahead of the full rollout of the subsidy rationalisation plan.
To date, nine government agencies have been approved to access Padu, which contains 30.4 million individual profiles with data on demographics, income, education, vehicle ownership and more.
He warned that falsifying Padu information to obtain subsidies would not be tolerated, adding that the system requires users to re-validate their data, with only verified details being used.
To encourage broader data-sharing, guidelines were issued to ministries and agencies in February, followed by training sessions from February to June to improve data literacy and support evidence-based policymaking.
