Finance Minister II, Datuk Seri Amir Hamzah Azizan said local consumer transactions in ‘buy now, pay later’ (BNPL) surged in the second half of 2024 to reach RM7.1 billion, up from RM4.9 billion in the first half.
As of December 2024, there were 5.1 million active BNPL users, the majority aged 21 to 45 years old and earning less than RM5,000 per month, and twelve companies offered BNPL services.
Amir Hamzah stated that despite the increasing use of BNPL in Malaysia, this would raise concerns about the level of household debt and the overall increase in transactions remaining in check.
However, BNPL loans totaling RM2.8 billion only contributed 0.2% of total household debt in the country.
Meanwhile, outstanding BNPL loans remained in check at RM82.6 million (2.9%) of total credit.
Amir Hamzah said the Ministry of Finance (MOF) 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.
The bill, he explained, would create a comprehensive regulatory framework for non-bank credit providers
