Kuala lumpur: The enactment of a special act relating to the 'Buy Now Pay Later' (BNPL) scheme is important to protect consumers, especially the younger generation, from high debt burdens. Global Law Thinker Society (GLTS) Malaysia chairman Muhammad Nazrin Faiz said the move is important to ensure a balance between consumer needs and the interests of traders.

According to BERNAMA News Agency, Muhammad Nazrin Faiz highlighted that the legal framework for BNPL is still being adapted, indicating a need for a clear platform to guide both consumers and sellers. He emphasized the importance of establishing purchase limits for consumers and defining appropriate costs or interest rates for sellers.

Muhammad Nazrin stated that such an enactment has the potential to benefit both parties, as traders can continue to generate profits while consumers can make purchases without facing financial risks. He also suggested that stakeholders, including non-governmental organizations (NGOs), should intensify financial literacy campaigns to educate consumers.

He further explained that by presenting the outcomes of these programmes and integrating them into the legislative process, the aim is to protect both traders and consumers. Muhammad Nazrin underscored that managing debt levels effectively will have a positive impact on the country's economy, as excessive debt can have adverse repercussions.