Malaysian youths rack up RM5.4bil in Buy Now, Pay Later purchases
Malaysian youths have accumulated RM5.4 billion in Buy Now, Pay Later (BNPL) debt, prompting government concerns over financial over-indebtedness. New regulations under the Consumer Credit Act 2025 now mandate strict creditworthiness assessments for providers.
Why it matters
The rise of BNPL services among young consumers poses significant risks to personal financial stability, necessitating increased regulatory oversight.
KUALA LUMPUR: Malaysian youths aged 30 and below recorded RM5.4bil in Buy Now, Pay Later (BNPL) purchases across 65.9 million transactions, the Finance Ministry revealed.
This accounts for 37.9% of the nation’s 173.9 million total BNPL transactions and 36.7% of the overall RM14.7bil transaction value recorded nationwide.
As of June 30, the outstanding BNPL financing balance among young consumers reached RM2.4bil, with RM96.8mil, or 4%, currently unpaid.
To protect young consumers from falling into debt traps, the ministry said the Consumer Credit Commission strictly requires BNPL providers to conduct creditworthiness and affordability assessments before granting credit.
“These assessments must take into account the consumer’s overall financial commitments, including existing credit facilities from both bank and non-bank providers, as well as any new facilities being applied for,” the ministry said in a written reply on Wednesday (Oct 14).
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