KUALA LUMPUR: The total buy now pay later (BNPL) scheme loans as of Sept 30, 2025 were RM4.2 billion covering seven million active account holders in the country, comprising 0.3 per cent of the total household indebtedness in Malaysia.
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 said in reply to a question from Datuk Seri Jalaluddin Alias (BN-Jelebu) at the Dewan Rakyat, who asked about the steps taken by the government in controlling credit purchases on e-commerce platforms which have high potential to be the cause of increasing household debt in Malaysia.
Lim said that as of September 2025, total credit card debt was 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 payment flexibility to consumers if they are able to 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 which have the potential to contribute to an increase in household debt, especially through the use of credit cards and the BNPL scheme.
"The government is always concerned and continues to introduce various policies to ensure that credit lenders are always prudent in their lending activities.
"This step is important in addressing the risk of debt beyond their means and increasing protection for credit users to ensure that it does not have a negative impact on household resilience and the stability of the country's financial system,” she said.
Lim also said the Consumer Credit Act 2025 (CCA) which is expected to come into effect at the end of this year is one of the government's initiatives to control the use of BNPL, especially in purchases through credit on e-commerce platforms.
"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 a creditworthiness assessment and affordability assessment of credit users before offering financing, ensuring fair transaction terms, imposing transparent, reasonable and non-burdensome charges or fees, as well as prudent debt collection procedures,” she said. - Bernama
