On 15 March 2022, the Ministry of Finance (MOF) issued a media release stating that the Ministry of Finance (MoF), Bank Negara Malaysia (BNM), and the Securities Commission (SC) are spearheading collaborations with relevant agencies to formulate a comprehensive legal framework to regulate all consumer credit activities, including the “Buy Now Pay Later” (BNPL) scheme. It would be set in place with the enactment of the Consumer Credit Act (CCA) this year. All credit and BNPL providers will be subject to relevant regulations that also encompass risk control and consumer protection as well as the appropriate shariah compliance rules in performing BNPL activities.
The government expects to see more new innovations in line with the digital acceleration and notes that these innovations would need to be well regulated. Consumers are advised to understand the BNPL’s terms and conditions, ensure that installment payments are made in full and on time, and monitor their BNPL commitments to ensure that their personal debts remain manageable.
Please click here to view the Media Release.