KUALA LUMPUR (March 11): Local consumer 'buy now, pay later' (BNPL) transactions surged in the second half of 2024 (2H2024), reaching RM7.1 billion, up from RM4.9 billion in 1H2024, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

As of December 2024, there were 5.1 million active BNPL users, the majority aged 21 to 45 and earning less than RM5,000 per month. Twelve companies were offering BNPL services, he said.  

Amir Hamzah noted that while the growing use of BNPL in Malaysia had raised concerns over household debt levels, the overall increase in transactions remains manageable.  

"As of December 2024, BNPL loans stood at RM2.8 billion, accounting for just 0.2% of total household debt in the country.  

"Meanwhile, outstanding BNPL loans remained under control at RM82.6 million, or 2.9% of total BNPL credit," he said during a question-and-answer session in the Dewan Negara.  

He was responding to a question from Senator Musoddak Ahmad on efforts to regulate credit-granting agencies, including BNPL services.  

Amir Hamzah said the Ministry of Finance (MOF) had tabled the first reading of the Consumer Credit Bill in the Dewan Rakyat on March 4, part of the government’s efforts to enhance consumer protection in the credit sector. 

The bill, he explained, would establish a comprehensive regulatory framework for non-bank credit providers.  

"Under the Consumer Credit Act, BNPL providers will be required to adhere to ethical and conduct standards, ensuring transparency in fees and charges, fair credit terms, and regular payment reminders for borrowers.  

"If passed, the Act will be overseen by a new regulatory body, the Consumer Credit Commission, under the MOF," he added.  

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