07/02/2026

SATURDAY | FEB 7, 2026

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7.5mil active users recorded at end of 2025, says survey PETALING JAYA: Malaysia’s buy now, pay later (BNPL) market has grown rapidly, with approximately 7.5 million active users recorded as of the end of 2025, according to the Consumer Credit Oversight Board (CCOB). Despite the surge in usage and transaction volume, regulators say BNPL-related debt currently poses a limited risk to household financial stability, though close monitoring remains necessary. Based on findings from the BNPL Survey 2024 conducted by the CCOB, which gathered responses from about 21,000 participants, the majority of BNPL users in Malaysia maintain a relatively limited number of accounts. “About 87% of respondents reported holding one or two BNPL accounts at any given time, suggesting that widespread multi-platform usage remains contained. As of December 2025, BNPL-related liabilities are estimated to account for approximately 0.3% of total household indebtedness,“ CCOB said in its reply to theSun . In terms of activity, BNPL transactions reached 243 million in 2025, with a total transaction value of RM21.3 billion, which indicates strong consumer uptake, particularly for short-term financing of retail purchases, although regulators emphasise that the overall exposure remains small when compared with other forms of household borrowing. According to CCOB, a BNPL account is classified as “overdue” or non-performing from as early as one day past due following a missed repayment obligation. This threshold is notably tighter than traditional credit products, reflecting regulators’ intent to closely track early signs of repayment stress among users. Meanwhile, according to the CCOB Task Force, this suggests that BNPL debt remains a relatively small component of overall household financial obligations and does not, at present, pose a systemic risk. Looking ahead, oversight of BNPL risks will fall under the Consumer Credit Commission (CCC), which will adopt a holistic and risk-based approach rather than relying on a single numerical threshold to determine systemic risk. The CCC will assess multiple indicators, including market behaviour, borrowing patterns, repayment performance and consumer welfare trends. “BNPL obligations are considered manageable when overdue amounts remain small relative to total household debt, repayment performance is consistently strong and consumer complaints stay within manageable levels,” CCOB said. However, regulators cautioned that the risk profile could shift if certain warning signs emerge. These include a sharp increase in overdue BNPL payments, rapid growth in BNPL liabilities relative to household debt, or a significant rise in consumer complaints related to BNPL practices. Such developments would signal emerging vulnerabilities in household financial resilience and warrant closer regulatory scrutiny. To address potential risks, the CCC will conduct ongoing surveillance of the BNPL sector using a proportionate supervisory framework. which aims to ensure that risks are identified early without unnecessarily restricting consumer access to short-term credit options that, when used responsibly, can support household cash flow. The CCOB Task Force reiterated that regulatory oversight will continue to evolve alongside market developments, balancing innovation in consumer credit with safeguards to protect borrowers and maintain financial stability. – BY IKHWAN ZULKAFLEE

Preventing M’sians from falling into excessive debt ROYAL PRESENCE ... Sultan of Selangor Sultan Sharafuddin Idris Shah and Tengku Permaisuri of Selangor Tengku Permaisuri Norashikin with (from left) Bernama chairman Datuk Seri Wong Chun Wai, MCMC chairman Mohd Salim Fateh, Entrepreneur and Cooperatives Development Minister Steven Sim, Communications Minister Datuk Fahmi Fadzil and Datin Seri Florence Teh (right) tossing Yee Sang at a Bernama Chinese New Year dinner on Thursday night. – BERNAMAPIC

o Move to regulate buy now, pay later scheme aims to protect interests of credit consumers, ensure responsible lending practices:

“Young consumers, in particular, often have limited financial buffers to absorb economic shocks. If BNPL becomes a default financing option rather than a short-term bridge, it may expose them to higher long-term financial stress,” he said. Idham stressed that BNPL should be viewed as a supplementary financial tool rather than a substitute for sustainable income growth or comprehensive social support. From a policy perspective, Idham said regulators and policymakers must strike a careful balance between encouraging financial innovation and safeguarding consumer welfare. “Responsible lending practices, clear disclosure of fees and repayment obligations and effective affordability assessments are critical to ensure BNPL does not evolve into a systemic household debt issue.” – BY IKHWAN ZULKAFLEE RM12 billion were recorded. Youths aged 30 and below accounted for about 40% of total BNPL transactions,” he said, adding that BNPL services are commonly used for food purchases, groceries, transport and services, with an average transaction value of RM91. A study by the Consumer Credit Oversight Board Task Force found that more than 70% of active BNPL users are from the lower-income group (B40), highlighting the need for stronger consumer protection measures, Liew said. As at Dec 31, 2025, total outstanding BNPL loans stood at RM4.9 billion, representing about 0.3% of overall household debt. Overdue BNPL amounts were recorded at RM160.2 million, or 3.3% of total BNPL loans, which Liew said indicates that BNPL-related debt does not pose a systemic risk at present. Under Act 873, the Consumer Credit Commission will be established as the regulator responsible for monitoring industry compliance and enforcing consumer protection requirements. The commission will have powers to investigate, take enforcement action and impose penalties on non-compliant credit providers.

“This indicates that BNPL is generally being used cautiously, not as a channel for excessive or impulsive consumption, but rather as a coping mechanism in a challenging economic environment,” he said. However, he cautioned that the rapid expansion of BNPL platforms requires close regulatory scrutiny to prevent longer-term risks from emerging. While BNPL offers temporary financial relief, sustained reliance on deferred payment schemes could obscure deeper structural issues within the economy. “Persistent use of BNPL may mask fundamental problems such as insufficient real wage growth and limited upward income mobility, particularly among younger workers.” Idham warned that without parallel including BNPL providers that were previously not subject to direct oversight by any authority. “The primary objective of this Act is to protect the interests of credit consumers and ensure responsible lending practices across the industry,” he told theSun via WhatsApp. Liew said as of the end of September 2025, Malaysia’s total household debt stood at RM1.69 trillion, equivalent to 84.9% of gross domestic product (GDP). Following the revision of the youth age definition to those aged 30 and below, youth household debt accounted for 7.8% of total household debt, amounting to RM132.4 billion. He said unsecured debt among youths under 30, including personal financing and credit card debt, declined slightly from 8.1% in December 2024 to 8.0%, or RM10.6 billion, by September 2025, with the median age of young borrowers holding unsecured debt recorded at 27 years. On BNPL usage, Liew revealed that the number of BNPL transactions surged to 243 million in 2025, with a total transaction value of RM21.3 billion. “This represents a sharp increase of 66% in transaction volume and 78% in value compared with 2024, when 146 million transactions worth

Deputy minister Ű BY IKHWAN ZULKAFLEE newsdesk@thesundaily.com

PETALING JAYA: The government has taken comprehensive steps to prevent Malaysians, particularly youths and vulnerable groups, from falling into excessive debt, including introducing regulatory oversight on buy now, pay later (BNPL) schemes under the newly enacted Consumer Credit Act 2025 (Act 873), Deputy Finance Minister Liew Chin Tong said. Liew said Act 873, which will come into force this year, establishes a comprehensive regulatory framework for the non-bank credit industry,

‘Growing use of services reflects economic pressures’ PETALING JAYA: The growing use of buy now, pay later (BNPL) services in Malaysia reflects mounting economic pressures faced by households rather than irresponsible consumer behaviour, said economist Dr Idham Razak. of BNPL services despite concerns surrounding household indebtedness, while pointing out that the relatively low proportion of overdue BNPL loans suggests that most users remain disciplined in their repayments. improvements in wages, productivity and social protection mechanisms, BNPL usage could gradually entrench financial vulnerability among certain segments of the population.

The finance lecturer at Universiti Teknologi Mara Malacca said the sharp increase in BNPL transactions and outstanding balances must be viewed in the context of prolonged wage stagnation alongside rising living costs, particularly for essential expenses such as food, housing and transport. “BNPL has effectively become a short-term liquidity management tool for many consumers, especially young adults and lower-income households who are facing constrained disposable income,” Idham told theSun via WhatsApp. Idham said BNPL allows users to smooth consumption during periods of financial stress, enabling them to meet basic needs without immediate cash outflows. He added that this explains the strong uptake