BANK Negara Malaysia (BNM) has underscored the importance of establishing the Consumer Credit Commission, describing it as both timely and critical in safeguarding consumers by regulating previously unmonitored non-bank credit and credit service providers, including buy now, pay later (BNPL) platforms.
In its Financial Stability Review for the second half of 2025, the central bank noted that although BNPL exposures remain modest, representing just 0.3 per cent of total household debt, the segment’s rapid expansion necessitates careful oversight.
“The establishment of the commission will bring previously unregulated non-bank credit providers and credit service providers, including BNPL providers, under a formal regulatory and supervisory framework. This is expected to strengthen existing consumer protection and oversight efforts,” BNM said.
The central bank reported that BNPL activity continued to accelerate in the latter half of 2025.
Total transaction volume rose to 140.3 million, with a value of RM11.9 billion, compared to 102.6 million transactions worth RM9.3 billion in the first half of the year.
Correspondingly, outstanding BNPL debt climbed to RM4.9 billion by the end of December 2025, up from RM3.8 billion in June 2025.
“Growth continues to be primarily driven by a sharp rise in active BNPL users, with active accounts reaching 7.5 million in December 2025, compared with 6.5 million in June 2025,” BNM said.
Despite the expansion, the proportion of overdue BNPL debt remained stable at 3.2 per cent of total outstanding debt, well below the six per cent recorded during the early phase of the sector in March 2023.
The establishment of the Consumer Credit Commission marks a significant step in formalising regulation across emerging financial services, ensuring that Malaysia’s rapidly evolving digital credit landscape is aligned with robust consumer protection and financial stability objectives. - March 31, 2026
