THE Dewan Negara has approved the Consumer Credit Bill 2025 (RUUKP), paving the way for the regulation of previously unsupervised credit services such as Buy Now Pay Later (BNPL) schemes, leasing, factoring, debt collection and debt management.
The landmark legislation, passed on 4 September following its third reading by Deputy Finance Minister Lim Hui Ying, is set to become a foundational Act governing all Regulatory and Supervisory Authorities (RSAs) overseeing consumer credit activities in Malaysia.
With the enactment of this bill, the Consumer Credit Commission (SKP) will assume regulatory oversight of these services under Phase One of the new framework once the Act comes into force.
“RUUKP represents a powerful reform to strengthen consumer protection and restructure the national credit landscape,” said Lim. “The MADANI government does not take lightly the principles of justice and inclusion in all aspects of governance, to ensure the welfare of the people is safeguarded. This is also a step towards restoring confidence in institutions, as outlined in the MADANI Economic Framework.”
Currently, six categories of consumer credit services operate without regulatory oversight.
The passing of the RUUKP will close that gap and introduce enforceable standards for ethical debt collection and limits on excessive charges, while ensuring uniform regulatory treatment across the credit sector.
The bill is expected to be gazetted by the end of 2025, offering greater legal protections to consumers and enhancing trust in the country’s financial system.
The SKP, to be established under this new law, will operate as an independent body with four core functions: advising the Finance Minister on all matters relating to consumer credit; guiding government policy formation on credit-related issues; promoting fair, professional and responsible conduct among credit providers; and fostering the development of a transparent and efficient consumer credit industry. - Sept 5, 2025
