Malaysia’s Consumer Credit Bill 2025 was passed by the Dewan Rakyat on 21 July 2025 via a voice vote, paving the way for tighter rules over non-bank credit and credit service providers, including buy-now-pay-later (BNPL). The law sets the groundwork for a Consumer Credit Commission (CCC), a statutory body under the Ministry of Finance, aimed at bringing previously unsupervised credit activity into a clearer framework. This shift matters because BNPL use has been rising, and policymakers have framed the bill as part of broader efforts to reduce over-indebtedness and improve consumer protection across Malaysia’s evolving credit landscape.
The BNPL figures cited around the bill show why regulation is catching up. Transaction volumes climbed to 102.6 million in the first half of 2025, up from 83.8 million in the second half of 2024. Over the same period, total transaction value rose by 31%, from RM7.1 billion to RM9.3 billion. Active BNPL accounts increased from 5.1 million at the end of 2024 to 6.5 million by June 2025. As of end-June 2025, Malaysia had 16 BNPL providers, with Shopee SPayLater, Atome, and GrabPayLater accounting for over 95% of market share.
What the New Rules Mean for BNPL Users and Providers
Under the CCC’s direction, the framework introduces licensing and registration, plus mandatory financial assessments to evaluate a borrower’s ability to repay before credit is granted. Deputy Finance Minister Lim Hui Ying also said BNPL providers will be required to clearly disclose credit information such as repayment terms, fees, and other charges. Providers must additionally report consumer credit data to agencies like CTOS through a centralised data platform. Lim stated that credit ceilings will not be implemented during the initial phase, and that data collection will inform future decisions on appropriate limits.
Survey findings cited in Parliament point to both scale and risk-management priorities. A Consumer Credit Oversight Board (CCOB) survey involving 21,000 users found that 88% paid their BNPL debts on time. Around 12% had overdue payments but remained capable of repayment, while fewer than 1% were unable to meet their obligations. The same survey found that 70% of BNPL users had monthly incomes under RM5,000, reflecting the popularity of instalment-based credit among lower-income consumers. These numbers help explain why Malaysia’s approach combines access with more explicit consumer protection requirements.
Implementation is structured to reduce disruption. The Consumer Credit Act 2025 was passed in July 2025 and is expected to be gazetted by the end of 2025. RinggitPlus describes three phases: Phase 1 is a preparation stage where existing authorities continue oversight while incorporating new consumer protection provisions; Phase 2 is expected in 2028, with the CCC taking over functions covering moneylending, pawnshops, hire purchase, and credit sales; and Phase 3 is targeted for 2031, aiming for full consolidation following a government review. Separately, legal analysis highlights a “Regulatory and Supervisory Authority” (RSA) concept that includes the Commission, Bank Negara Malaysia, the Securities Commission Malaysia, and relevant ministries and agencies. For businesses tracking the Malaysia Consumer Credit Bill BNPL changes, the near-term focus is readiness for licensing, disclosures, affordability checks, and data reporting.
What does Malaysia’s Consumer Credit Bill change for BNPL?
How fast has BNPL usage grown in Malaysia recently?
How many BNPL providers operate in Malaysia, and who leads the market?
What does the survey data say about BNPL repayments?
When will the Consumer Credit Act framework be fully rolled out?
