Kuala lumpur: The government should establish a creditworthiness or credit scoring agency to regulate the eligibility of consumers taking loans, according to Member of Parliament (MP) Sim Tze Tzin (PH-Bayan Baru). Sim emphasized that transparent creditworthiness could help alleviate consumers’ financial burdens and reduce dependence on unlicensed money lenders or syndicates.

According to BERNAMA News Agency, Sim highlighted that despite the presence of credit reporting companies like CTOS in Malaysia, the average citizen lacks understanding of credit scores and is often unaware of their own credit ratings. He proposed that a clear and transparent credit scoring system could promote responsible borrowing behavior and facilitate access to financial facilities such as credit cards and personal loans. Sim presented these arguments while discussing the Consumer Credit Bill (RUUKP) 2025 during its second reading at the Dewan Rakyat.

Additionally, MP Rodiyah Sapiee (PH-Batang Sadong) suggested the creation of a specialized ‘Buy Now, Pay Later’ (BNPL) data centre to maintain the effectiveness of this micro-credit instrument. She argued that all BNPL-related information should be compiled in a dedicated data centre, separate from conventional credit systems like the Central Credit Reference Information System (CCRIS). Rodiyah warned that integrating BNPL into CCRIS might hinder low-income consumers’ ability to secure future financing for major purchases such as homes and vehicles.

Rodiyah further proposed that this specialized data centre could be managed under the Consumer Credit Commission. This would allow for targeted monitoring of BNPL credit risks, including consumer exposure limits and payment behaviors, without compromising essential financial records.