MALAYSIA’S total outstanding credit card debt has reached RM50.7 billion as of September, with unpaid balances accounting for RM551.8 million or 1.1 per cent of the total, the Deputy Finance Minister Lim Hui Ying, revealed in Parliament today.
Lim highlighted the government’s proactive approach in addressing the growing reliance on credit purchases through e-commerce platforms, may have contributed to rising household indebtedness, particularly via credit cards and “buy now, pay later” (BNPL) schemes.
“The use of credit and charge cards on e-commerce platforms contributes to the increase in household credit purchases, with credit and charge cards remaining among the primary instruments of consumer financing,” Lim stated during a question-and-answer session in the Dewan Rakyat on Wednesday, responding to queries on measures to control credit purchases on e-commerce platforms.
She noted that BNPL debt amounted to RM4.2 billion as of 30 September, involving seven million active account holders, representing just 0.3 per cent of Malaysia’s total household debt. Unpaid BNPL balances remain manageable at RM147.7 million, affecting 185,465 accounts.
Lim emphasised that the government continues to introduce policies to promote responsible credit usage, mitigate the risk of over-indebtedness, and protect consumers.
One such initiative is the upcoming Consumer Credit Act 2025, which will regulate non-bank credit providers, including BNPL companies, requiring thorough creditworthiness assessments before financing is offered.
“Under this act, non-bank credit providers such as BNPL companies are required to comply with responsible credit conduct and practices to protect consumers. This includes conducting creditworthiness assessments and evaluating the borrower’s repayment capacity before offering financing,” Lim said.
Separately, Lim addressed government plans to digitalise social aid distribution, signalling an evaluation of replacing existing subsidy schemes with MyKad-based assistance.
She stressed that the immediate priority is the Sumbangan Asas Rahmah (SARA) programme, which has successfully provided targeted aid through the e-Bantuan system and electronic fund transfers, ensuring direct support to eligible citizens.
“The method of distributing government aid and subsidies has now shifted to a comprehensive digital system… allowing cash assistance to be transferred directly into the recipients’ bank accounts,” Lim explained.
She added that integrating MyKad enables accurate identification of recipients to ensure that only Malaysian citizens benefit, improving the efficiency and integrity of targeted social aid.
Lim also highlighted the government’s commitment to increasing annual allocations for Sumbangan Tunai Rahmah and SARA, with RM13 billion provided this year, up from RM10 billion in 2024.
Lim noted the positive economic impact, particularly for small and medium enterprises, as targeted aid helps sustain consumer spending and contributes to Malaysia’s 5.9 per cent economic growth in the second quarter of last year.
“This financial assistance, particularly SARA, is a mechanism used by the government to help citizens cope with rising living costs,” he said., underlining the dual objective of financial protection for households and broader economic stimulation. - December 3, 2025
