The government says the rapid growth of Buy Now Pay Later schemes is manageable, with overdue loans at 3.3% of the total and new regulations set to strengthen oversight.
PETALING JAYA: The government has assured that risks linked to the rapid growth of Buy Now Pay Later (BNPL) schemes remain under control, despite the number of users rising sharply from 2.6 million in 2023 to 7.5 million as at end 2025.
The Finance Ministry said the increase in users was in line with the expansion of BNPL transactions, which reached 243 million valued at RM21.3 billion as of December last year.
“The growth was also driven by the rise in BNPL service providers, from 10 in 2023 to 16 in 2025, broadening access and options for consumers.
“As at December last year total outstanding BNPL financing stood at RM4.9 billion, accounting for 0.3% of Malaysia’s total household debt,” the ministry said in a written reply in the Dewan Rakyat in response to a question from Ku Abd Rahman Ku Ismail (PN–Kubang Pasu) regarding the increase in BNPL account holders and the government’s measures to monitor them. The ministry added that the overdue BNPL financing amounted to RM160.2 million or 3.3% of total BNPL loans and described it as manageable and reflective of a contained debt burden among users.
“Nevertheless, the government continues to monitor developments in the BNPL sector closely to ensure it does not evolve into an uncontrolled debt burden, particularly with the increasing usage among youths.”
The ministry highlighted that the government has gazetted the Consumer Credit Act 2025 (Act 873), which will come into force this year, to strengthen consumer protection and promote responsible lending.
It emphasised that BNPL providers must comply with strict conduct standards, including doing creditworthiness and affordability assessments before approving financing.
“They are also required to ensure that terms, charges and fees are transparent, reasonable and not burdensome to consumers. The Consumer Credit Commission will be empowered to monitor compliance, carry out investigations, take enforcement action and impose penalties on non-compliant parties.”
The ministry also said the government is intensifying financial literacy initiatives, particularly among youths and lower-income groups, to improve awareness of debt management and the importance of prudent financial decision-making.
The Sun Malaysia
