According to Finance Minister II Datuk Seri Amir Hamzah Azizan, Buy Now, Pay Later (BNPL) service providers will be required to conduct affordability assessments before extending credit. This requirement is part of the upcoming Consumer Credit Act 2025 (CCA), which serves as a regulatory framework for the growing BNPL sector.
Amir Hamzah highlights the affordability assessments as an important measure in preventing borrowers, particularly the younger generation, from experiencing significant financial stress and becoming trapped in debt. Aside from requiring these providers to conduct affordability assessments, the new law outlines key safeguards like fair contract terms, transparent and reasonable fees, as well as professional debt collection standards.

Moreover, the Consumer Credit Commission (CCC) will be responsible for monitoring BNPL companies to ensure they comply with the regulations. The CCC will have the authority to act appropriately in cases of non-compliance. Such actions may include administrative sanctions, civil enforcement, and criminal prosecution where necessary.
Additionally, the CCC will also be tasked with issuing regulatory standards. BNPL providers must comply with these standards, which consist of licensing requirements, conduct rules, and governance criteria. Part of these requirements includes ensuring the company meets a minimum financial threshold. Other than that, the board members and senior management must be fit and proper.
The finance minister went on to add that the government stresses the importance of financial literacy as it helps Malaysians make informed decisions and reduce dependence on BNPL schemes. Currently, the BNPL system has reached transactions worth RM7.1 billion.
(Source: New Straits Times)