16/01/2026

FRIDAY | JAN 16, 2026

10

COMMENT by Dr Asraf Mohamed Moubark and Dr Mohd Hairi Mohd Zaman

O NLINE shopping has become effortless, and many e commerce platforms have made “buy now, pay later” (BNPL) services a familiar option for consumers. With just a few taps, shoppers can receive the latest gadgets, fashion or beauty products immediately while deferring payment over weeks or months. While convenient, experts warn that BNPL is quietly encouraging financial challenges among young Malaysians. As of June 30, 2025, total BNPL loans in Malaysia stood at approximately RM3.8 billion, representing around 0.2 % of total household debt. There are about 6.5 million active BNPL account holders, with a significant portion under the age of 30. Nearly 169,000 users (2.6 % of all BNPL users) had overdue balances, totalling RM121.8 million or 3.2 % of outstanding BNPL debt. In the first half of 2025 alone, the total value of BNPL transactions exceeded RM9.3 billion, illustrating the rapid growth of this credit option. Although the total debt is still a small fraction of household liabilities, the figures highlight a worrying trend – young consumers increasingly rely on BNPL for daily and discretionary spending, often without understanding the consequences. BNPL encourages impulsive purchases, making spending feel “free” in the moment, which can lead youths to buy items they do not truly need, especially trendy gadgets, fashion or lifestyle products. Small deferred payments can quickly accumulate into hundreds or thousands of ringgit in debt, and many users underestimate their total obligations until it becomes overwhelming. Between 2020 and 2025, 5,272 youths aged 34 and under were declared bankrupt in Malaysia, with financial vulnerability from digital spending and easy access to credit, including BNPL, cited as a contributing factor. Financial experts are concerned about the long-term impact. Nor Fazleen Zakaria, Education and Outreach general manager at the Credit Counselling and Debt Management Agency, cautioned that BNPL “should never replace proper financial planning… Do you really need that item right now?” Q: Communication has become an issue with our family. It seems none of us spend time talking anymore. I don’t know how this happened but I am concerned about how it is affecting our relationships. What can I do to change the situation? Focus on the Family Malaysia : You are wise to work towards reversing this trend. Regular and open conversations are essential to healthy family relationships. Deep down, we all want to know and be known, and talking is absolutely crucial to this process. Family conversations are especially important because they promote and bolster a sense of family identity. When children possess a healthy sense of belonging, they are less apt to experiment with risky behaviours and far more likely to develop strong characters. Where to begin? We suggest that the dinner Under One Roof

BNPL: Growing debt trap for young Malaysians

BNPL encourages impulsive purchases, making spending feel ‘free’ in the moment, which can lead youths to buy items they do not truly need, especially trendy gadgets, fashion or lifestyle products. – ADIB RAWI YAHYA/ THESUN

“As of June 30, 2025, total BNPL loans in Malaysia stood at approximately RM3.8 billion, representing around 0.2 % of total household debt. There are about 6.5 million active BNPL account holders, with a significant portion under 30-years-old.

literacy and responsible borrowing, BNPL can trap young consumers in cycles of debt that threaten long-term stability. “Buy now, pay later” makes shopping easy but it is quietly trapping young Malaysians in debt. With millions of active users under 30 and BNPL transactions exceeding RM9 billion in just six months, small impulsive purchases can quickly snowball into unpaid bills. Without awareness and responsible spending, what seems like convenience today can become a financial stress tomorrow. Dr Asraf Mohamed Moubark and Dr Mohd Hairi Mohd Zaman are from the Department of Electrical, Electronic and System Engineering, Faculty of Engineering and Built Environment at University Kebangsaan Malaysia. Comments: letters@thesundaily.com person he took it from. That will cement the lesson in his mind in an immediate and practical way. If the behaviour occurs in a classroom setting, you can work with the teacher to set up a restitution plan. For example, your son may have to miss out on a fun activity or stay after class to help clean up the room. If you are correct in thinking that your son does not actually mean to steal, this plan should correct his behaviour rather quickly. But if the problem persists, his actions may be a manifestation of deeper issues. Our licensed counsellors will be able to discuss your concerns with you further. You can schedule an appointment on our website. This article is contributed by Focus on the Family Malaysia, a non-profit organisation dedicated to supporting and strengthening the family unit. It provides a myriad of programmes and resources, including professional counselling services, to the community. For more information, visit family.org.my. Comments: letters@thesundaily.com

also can cause stress and anxiety. Experts also warn that BNPL gamifies shopping. Flash sales and limited- time offers combined with deferred payments promote over-consumption, encouraging instant gratification at the expense of long-term financial stability. While no widely reported cases in Malaysia link BNPL as the sole cause of bankruptcy, international experiences highlight the risks. In the US, consumers have accumulated tens of thousands of dollars in BNPL debt alongside credit cards and other loans, with unpaid amounts sometimes sent to collections, contributing to financial distress. Research shows BNPL users are more likely to face serious debt problems than traditional credit users. In the UK, surveys reveal that misunderstandings of BNPL obligations have led to financial strain and defaults. Experts warn that without financial

She urged consumers to pause and consider the long-term implications, warning that over-reliance on BNPL can lead to accumulated debt and damaged credit scores, which can also affect mental health. Missing payments can result in late fees, interest charges or even collection actions, and many young users may not be fully aware of these costs. BNPL usage is increasingly reported to credit bureaus, meaning defaults can negatively impact credit scores and affect future loans, mortgages or even job opportunities. Easy access to deferred payments can foster poor financial habits, creating a “buy now, worry later” mindset. Multiple BNPL accounts or frequent use can leave users over-leveraged, struggling to cover essentials such as rent, tuition or living expenses. The constant reminders of unpaid balances and mounting debt can

We don’t talk anymore: Reconnecting with children at home

irresponsible – that he puts things in his pocket and forgets about them. We have talked to him about why this behaviour is wrong but he keeps doing it. Focus on the Family Malaysia : It is important to tell your son that stealing is wrong but it is also crucial to remember that four-year-olds tend to respond more to actions than words. If you don’t back up your reproofs with consequences, children are unlikely to change their behaviour. In your son’s case, he needs to know what it feels like when someone takes something from him that he values. Let him know that the next time he takes an item, you will be taking something away from him. If it happens again, go into his room while he is occupied elsewhere and remove one of his favourite toys. When he discovers it is missing, tell him you took it and that he won’t get it back for a day. Each time the behaviour recurs, extend the penalty by an additional day. In addition, when you discover your son has taken something that does not belong to him, have him quickly return it and apologise to the

table is a good place to start. You can encourage reluctant children by giving them your undivided attention, practising active listening and initiating conversations. Use emotion-based rather than fact-based language. In other words, try to get at the feelings family members are experiencing rather than focusing on the things you have been doing. It also helps to have something to talk about – common interests, mutual accomplishments, collective memories, meaningful stories, perhaps even a shared family hobby like biking, camping or games night. Avoid “yes” or “no” questions as much as possible. Instead, try to come up with personal, open-ended questions. For instance: 0 What has been the best and worst part of your week so far? What made it good or bad? 0 What is the most exciting thing you have heard recently? 0 If you can be anyone in the world, who would you be and why? Q: How can we stop our four-year-old from stealing? I have a feeling he is just being