KUALA LUMPUR, Dec 3 — Total buy now, pay later (BNPL) scheme loans as of September 30 were at RM4.2 billion, covering seven million active account holders in the country, representing 0.3 per cent of Malaysia’s total household debt.
Deputy Finance Minister Lim Hui Ying said the amount of unpaid or overdue BNPL loans was under control, amounting to RM147.7 million or 3.5 per cent of the total BNPL loans.
“For the same period, there were 185,465 BNPL account holders with unpaid balances,” she told the Dewan Rakyat in reply to a question from Datuk Seri Jalaluddin Alias (BN-Jelebu) about the government’s moves to control credit purchases on e-commerce platforms that are highly likely to cause increasing household debt.
Lim said that as of September, total credit card debt was at RM50.7 billion, with the unpaid or outstanding amount being RM551.8 million, or 1.1 per cent of the total credit card and charge card debt.
“Credit cards and charge cards offer flexible payment for consumers if they can manage their debts prudently.
“The use of credit cards and charge cards in e-commerce platforms has contributed to the increase in credit purchases among households, where credit cards and charge cards remain one of the main instruments of consumer financing,” she said.
She said the government is taking proactive and comprehensive steps to address the issue of credit purchases through e-commerce platforms, especially through the use of credit cards and BNPL schemes.
“The government is always mindful and continues to introduce various policies to ensure credit lenders are prudent.
“This step is important in addressing the risk of debt beyond means and increasing protection for credit users to ensure it does not have a negative impact on household resilience and the stability of the country’s financial system,” she said.
She added that the Consumer Credit Act 2025 (CCA), which is expected to come into effect at year end, is a government initiative to control BNPL use, especially in purchases via credit on e-commerce sites.
“Through the CCA, non-bank credit providers such as BNPL companies are required to comply with the requirements of responsible credit granting and practices to protect credit users.
“This includes conducting creditworthiness and affordability assessments of credit users before offering financing, ensuring fair transaction terms, imposing transparent, reasonable and non-burdensome charges or fees, as well as practising prudent debt collection procedures,” Lim said.
