Finance minister II Amir Hamzah Azizan said the rise in BNPL transactions remains manageable despite concerns over household debt levels. (Rawpixel pic)
KUALA LUMPUR: Local consumer “buy now, pay later” (BNPL) transactions surged in the second half of 2024 to RM7.1 billion, up from RM4.9 billion in the first half of the year, said finance minister II Amir Hamzah Azizan.
As of December 2024, he said, there were 5.1 million active BNPL users, the majority of whom were aged 21 to 45 and earning less than RM5,000 per month.
Twelve companies offer BNPL services, he added.
While the growing use of BNPL in Malaysia has raised concerns over household debt levels, Amir said the overall increase in transactions remained manageable.
“As of December 2024, BNPL loans stood at RM2.8 billion, accounting for just 0.2% of total household debt in the country.
“Meanwhile, outstanding BNPL loans remained under control at RM82.6 million, or 2.9% of total BNPL credit,” he said during a question-and-answer session in the Dewan Negara.
Amir said the finance ministry had tabled the first reading of the Consumer Credit Bill in the Dewan Rakyat on March 4 as part of the government’s efforts to enhance consumer protection in the credit sector.
He said the bill would establish a comprehensive regulatory framework for non-bank credit providers.
“Under the Consumer Credit Act, BNPL providers will be required to adhere to ethical standards, ensuring transparency in fees and charges, fair credit terms, and regular payment reminders for borrowers.
“If passed, the act will be overseen by a new regulatory body, the Consumer Credit Commission, under the finance ministry,” he added.
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