KUALA LUMPUR (July 16): Malaysians’ outstanding buy now, pay later loans have grown by some RM400 million in just three months from the end of 2025, latest government data show.

Loan balances under the service also known as BNPL totalled RM5.3 billion at the end of March versus RM4.9 billion at end-2025, according to Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, in a written parliamentary reply dated July 15.

The government took note of the significant growth in the use of BNPL, particularly among young people, he said.

“Accordingly, the government is of the view that the development of this sector must be accompanied by strong consumer protection to ensure that credit facilities continue to be used prudently and responsibly,” Anwar added.

Overdue loans totalled RM181 million, or 3.4% of the total outstanding balance, with eight million active account holders. Overall, BNPL debt remains low, at around 0.3% of total household debt as at end-2025.

Around 40% of BNPL users are individuals aged 30 years and below, and the service is generally used for the purchase of low-value daily necessities such as food, groceries, transportation and services, with an average transaction value of less than RM100.

BNPL providers are required to obtain a licence from the Consumer Credit Commission (CCC) to ensure that only providers that meet regulatory, governance and consumer protection requirements are allowed to operate, Anwar stressed.

Potential operators have until Nov 30 to submit their applications. “During this period, the CCC is actively conducting engagement sessions with BNPL providers to ensure they fully meet the licensing requirements,” he added.

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