Kuala lumpur: The total buy now pay later (BNPL) scheme loans as of September 30, 2025, amounted to RM4.2 billion, covering seven million active account holders in Malaysia. This represents 0.3 percent of the total household indebtedness in the country.

According to BERNAMA News Agency, Deputy Finance Minister Lim Hui Ying reported that the amount of unpaid or overdue BNPL loans is under control, totaling RM147.7 million or 3.5 percent of the total BNPL loans. Lim revealed these figures in response to a question from Datuk Seri Jalaluddin Alias (BN-Jelebu) at the Dewan Rakyat. The query concerned the government’s measures to control credit purchases on e-commerce platforms, which are seen as a potential contributor to increasing household debt in Malaysia.

Lim further stated that as of September 2025, the total credit card debt stood at RM50.7 billion, with RM551.8 million or 1.1 percent of this amount being unpaid or outstanding. She emphasized that credit cards and charge cards offer payment flexibility if consumers manage their debts prudently. The use of these cards on e-commerce platforms has led to an increase in credit purchases among households, making them a primary instrument of consumer financing.

The government is actively taking comprehensive measures to address the issue of credit purchases through e-commerce platforms. These platforms are seen as potential contributors to rising household debt, particularly through credit cards and the BNPL scheme. Lim highlighted that the government continues to introduce policies to ensure that credit lenders are prudent in their lending activities. This is crucial in mitigating the risk of over-indebtedness and in enhancing protection for credit users to maintain household resilience and the stability of the financial system.

In addition, Lim mentioned that the Consumer Credit Act 2025 (CCA), which is expected to be enacted by the end of the year, is part of the government’s initiatives to regulate the use of BNPL, especially for credit purchases on e-commerce platforms. Under the CCA, non-bank credit providers, including BNPL companies, will be required to adhere to responsible credit granting practices to protect consumers. This includes conducting creditworthiness and affordability assessments before offering financing, ensuring fair transaction terms, and imposing transparent, reasonable charges or fees. Additionally, the CCA mandates prudent debt collection procedures.