The Ministry of Finance pointed out that the number of Buy Now, Pay Later (BNPL) users in our country has grown significantly within just two years, rising from 2.6 million in 2023 to 7.5 million by the end of 2025. During the same period, the transaction volume has also soared to 243 million transactions, with a total value reaching RM21.3 billion.
However, the Ministry of Finance noted that the overall risk level of BNPL remains controllable. As of December 31, 2025, the total amount of BNPL loans stood at RM4.9 billion, accounting for only 0.3% of the nation’s total household debt. Among these, the overdue amount is RM160.2 million, making up 3.3% of the total BNPL loan amount, reflecting that the related debt burden is still generally manageable.
The Ministry made this remark in a written reply in Parliament to Kubang Pasu MP Dato’ Wira Ku Abdul Rahman’s inquiry.
It said the rapid expansion of the BNPL market is related to the increase in the number of service providers. The number of providers has risen from 10 in 2023 to 16 in 2025, expanding consumers’ range of choices.
Nevertheless, the Ministry of Finance stated it will continue to closely monitor the development of the BNPL sector to prevent it from turning into an uncontrollable debt burden, especially since it is becoming increasingly popular among younger demographics.
The ministry said that, to strengthen consumer protection and ensure responsible lending, the government has, via the Consumer Credit Act 2025 which takes effect this year, brought credit businesses including BNPL companies into the regulatory framework.
The Ministry added that under the new framework, all providers offering such services must comply with strict conduct standards, including conducting credit and debt servicing ability assessments before approving financing. Providers must also ensure transaction terms, charges, and fees are transparent, reasonable, and do not place an undue burden on consumers, thus upholding the principle of responsible credit.
In addition, the Ministry said the Consumer Credit Oversight Board is empowered with the authority to supervise compliance, carry out investigations, take enforcement actions, and impose fines, to ensure the rapid development of BNPL business does not harm consumer rights or household financial stability.
"The government will also enhance financial literacy education, especially for the youth and low-income groups, raising awareness about debt management, the risks of over-indebtedness, and prudent financial decision-making, ensuring that BNPL services serve as a convenience tool rather than a burden."
The Ministry made this remark in a written reply in Parliament to Kubang Pasu MP Dato’ Wira Ku Abdul Rahman’s inquiry.
It said the rapid expansion of the BNPL market is related to the increase in the number of service providers. The number of providers has risen from 10 in 2023 to 16 in 2025, expanding consumers’ range of choices.
Nevertheless, the Ministry of Finance stated it will continue to closely monitor the development of the BNPL sector to prevent it from turning into an uncontrollable debt burden, especially since it is becoming increasingly popular among younger demographics.
The ministry said that, to strengthen consumer protection and ensure responsible lending, the government has, via the Consumer Credit Act 2025 which takes effect this year, brought credit businesses including BNPL companies into the regulatory framework.
The Ministry added that under the new framework, all providers offering such services must comply with strict conduct standards, including conducting credit and debt servicing ability assessments before approving financing. Providers must also ensure transaction terms, charges, and fees are transparent, reasonable, and do not place an undue burden on consumers, thus upholding the principle of responsible credit.
In addition, the Ministry said the Consumer Credit Oversight Board is empowered with the authority to supervise compliance, carry out investigations, take enforcement actions, and impose fines, to ensure the rapid development of BNPL business does not harm consumer rights or household financial stability.
"The government will also enhance financial literacy education, especially for the youth and low-income groups, raising awareness about debt management, the risks of over-indebtedness, and prudent financial decision-making, ensuring that BNPL services serve as a convenience tool rather than a burden."