PETALING JAYA: She discovered a digital cash-lending platform that offers quick money with no questions asked.
Within a month, content writer Salma (not her real name) racked up RM20,000 in debt by making near-daily withdrawals.
“I am just like the woman in the movie Confessions Of A Shopaholic. I have a problem controlling my urge to buy new things, especially makeup and clothes,” she said.
“I have reached a point where I have to take loans from these platforms to buy food and groceries and to pay my bills, because my entire salary is used up paying off existing loans.”
Salma, 36, is now saddled with a debt of RM70,000 across various financing facilities.
“The moment I repay, I will withdraw again, hence the debt keeps accumulating,” she added.
The practice of e-commerce giants offering personal financial services on their platforms began years ago in countries like China.
It gained popularity in other markets including South-East Asia due to the ease in getting such loans, which are available at one’s fingertips.
For these borrowers, the platform is being treated as an ATM with some people using it to buy groceries or even go on a shopping spree.
An administrave staff who only wanted to be known as Pauline said she had first taken a loan to fund the funeral of a family member. “When the money entered my account so easily, I began withdrawing as if it were an ATM.
“Next thing I know, I have maxed out my limits by buying stuff for my house and giving money to my parents.”
Pauline, 30, has now accumulated RM10,000 in debt.
A senior business development executive, known only as Hong, said he owed RM2,000 to a digital personal cash loan service with monthly repayments of RM100.
Hong, 29, also owed RM1,900 to a digital buy-now-pay-later service requiring RM500 in monthly repayments, alongside another RM400 for a ride-hailing platform’s buy-now-pay-later plan.
“Initially, I took these loans from a buy-now-pay-later service because I wanted to buy stuff from the platforms or use their services for my daily needs.
“Before I knew it, I ended up having to pay back RM1,000 a month to avoid my accounts being frozen,” he said, adding that he had used the money to buy groceries and online games.
An electronics test engineer, known only as Syed, said he owed RM2,500 to a digital platform run by an online licensed moneylender.
He had to pay RM400 monthly to gradually clear the loan which was originally RM6,000 with an interest rate of 18%.
The Star has also reached out to the Housing and Local Government Ministry for comments as these activities fall under money lending activities.
It is understood that regulatory and supervisory functions for moneylenders, pawnbrokers, credit sale providers, hire purchase companies and repossession agents will only be transferred to the Consumer Credit Commission under Phase II of the Consumer Credit Act coming into force.
Phase II is slated to take place between 2028 and 2030.
In response to queries, GXBank said it designed its FlexiCredit service with intentional safeguards against over-extension.
“By applying rigorous governance and alternative behavioural data, we assign personalised, sustainable limits with drawdown amounts kept deliberately modest mostly averaging under RM5,000,” it said.
Customer insights show that nearly 60% of drawdowns are processed outside conventional banking hours, providing a 24/7, regulated lifeline during unexpected emergencies and steering vulnerable borrowers away from predatory lenders.
“Additionally, about half of our lower-income users noted they were previously unable to secure a loan elsewhere, making FlexiCredit their first opportunity to build a formal, positive credit history,” it added.
GXBank said its transparent terms and zero prepayment penalties have encouraged proactive repayment, with nearly one in five borrowers choosing to prepay their facilities every month.
“True financial resilience, however, cannot rely on credit alone. Parallel to our lending safeguards, we actively champion saving habits.”
Last year, its customers created over 1.3 million Savings and Bonus Pockets, demonstrating that accessible credit and disciplined saving can reinforce one another, it said.
