KUALA LUMPUR: Credit and charge card use on e-commerce platforms has increased household credit purchases, says Deputy Finance Minister Lim Hui Ying.
She said these cards remain a main tool for consumer financing.
Lim said the Government is taking proactive measures to manage rising household debt from credit cards and Buy Now, Pay Later (BNPL) schemes.
“As of September 2025, outstanding credit card debt stood at RM50.7bil,” she said on Wednesday (Dec 3).
She said overdue amounts were RM551.8mil, or 1.1% of total credit and charge card debt.
She said BNPL loans totalled RM4.2bil across seven million active accounts, or 0.3% of household debt.
“Overdue BNPL loans remain manageable at RM147.7mil, or 3.5% of total BNPL debt,” she added.
A charge card is a short-term deferral tool that requires full repayment at the end of each billing cycle.
Lim said credit cards and BNPL offer flexible payment options for users who manage debt responsibly.
She said the government remains vigilant to ensure lenders act prudently and consumers are protected from unsustainable debt.
Lim also said the Consumer Credit Act 2025, expected by year end, will regulate BNPL providers.
She said this will focus on providers offering credit via e commerce platforms.
“Under the law, non bank lenders must conduct proper creditworthiness and affordability assessments,” she said.
“They must set fair terms, maintain transparent fees and follow responsible debt collection practices,” added Lim.
Lim was replying to Datuk Seri Jalaluddin Alias (BN–Jelebu).
He raised concerns about aggressive BNPL collections resembling new loan shark systems, including threatening messages.
He asked whether the government will tighten BNPL eligibility and regulate platforms to protect young people from debt.
Lim said the government will continue to promote financial literacy through the Financial Education Network.
She said it will collaborate with the Ministry of Digital to ensure fair and transparent lending practices.
“To prevent young people from falling into debt traps, we will continue nationwide financial literacy efforts,” she said.
She said the efforts will start from schools adding that as BNPL makes credit easily accessible, so education is key.
