Kuala lumpur: The establishment of the Consumer Credit Commission is expected to enhance access to credit in a more structured and secure manner, particularly in the Buy Now, Pay Later (BNPL) segment, which has previously been less comprehensively regulated.
According to BERNAMA News Agency, Universiti Teknologi Mara (UiTM) Sabah economics lecturer Herniza Rozanne Marcus highlighted that a clearer licensing framework, monitoring, and guidelines will ensure that non-bank credit providers adhere to stricter compliance standards, including transparency in charges and borrower eligibility assessment. She noted that while access to credit may be somewhat restricted in the short term as providers adapt to new regulations, the long-term outlook is positive, with anticipated growth in consumer and investor confidence supporting a sustainable and integrity-driven non-bank credit market.
Bank Negara Malaysia (BNM), in its Financial Stability Review for the second half of 2025 (2H 2025), emphasized the importance of the commission in safeguarding consumers through regulation and supervision of credit service providers and non-bank credit. The report noted that the BNPL segment, despite its small cumulative exposure of 0.3 per cent of total household debt, is rapidly growing and requires vigilant oversight. The number and value of BNPL transactions surged to 140.3 million transactions worth RM11.9 billion in 2H 2025, compared to 102.6 million transactions worth RM9.3 billion in 1H 2025.
Herniza pointed out that stricter regulations could potentially impede digital financial innovation, especially for new players dependent on flexible and technology-based business models. However, she advocated for a balanced implementation of regulations, suggesting a proportionate approach where regulation levels align with the risk level of products or providers. She emphasized the importance of risk-based monitoring and collaboration between regulators and the industry to foster innovation in a secure environment while highlighting the necessity of consumer protection and transparency.
Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, expressed that the Commission would streamline regulation and enforce the Consumer Credit Act, ensuring protection for both users and platform providers within a legal framework. He also stressed the need for enhanced financial literacy programs to address debt burdens from uncontrolled BNPL usage, especially among youth.
Pertubuhan Mesra Pengguna Malaysia (PMPM) deputy president Azlin Othman supported the Commission's establishment as timely for fostering an organized and responsible development of the BNPL industry. She stated that the Commission provides clarity in guidelines and compliance for service providers while bolstering consumer confidence through transparent terms and prudent credit practices. Additionally, Azlin noted the Commission's role in mitigating excessive debt risks by tightening repayment ability assessments and implementing layered monitoring of BNPL usage.