KUALA LUMPUR (Aug 4): The newly established Consumer Credit Commission (CCC) will review whether to limit interest rates charged by buy-now-pay-later (BNPL) providers on their services, Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat on Monday.
Set up under the Consumer Credit Act 2025, the CCC will regulate credit services like Atome, Grab PayLater, Shopee PayLater and others that are not currently supervised.
Amir Hamzah said the CCC will gather data and assess the most effective regulatory approach for BNPL operators, which currently charge interest rates ranging from 15% to 30% per annum, amid growing concerns about rising household debt among younger Malaysians.
"CCC will adopt a regulatory approach through conduct standards that will be designed in a balanced and proportionate manner," Amir Hamzah said in response to a supplementary question from Young Syefura Othman (PH–Bentong), who asked if the government will set a limit on interest rates to prevent young consumers from falling into uncontrolled debt.
The latest data from the Ministry of Finance showed that the number of BNPL transactions hit 102.6 million in the first half of 2025, with a total value of RM9.3 billion, up more than 30% from RM7.1 billion in the second half of 2024.
As at June 30, outstanding BNPL borrowings stood at RM3.8 billion, accounting for 0.2% of total household debt in Malaysia. Non-performing or overdue BNPL loans amounted to RM121.8 million, representing 3.2% of total BNPL borrowings, which Amir Hamzah described as “still manageable under current monitoring frameworks”.
Amir Hamzah added that CCC will have broad enforcement powers, ranging from administrative actions to civil or criminal penalties, as well as compound offers, depending on the severity of breaches.
BNPL providers are expected to comply with "responsible lending practices, including conducting affordability assessments, ensuring transparent and reasonable fees and charges", the senator added.
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