Under the proposed CCA, announced during the tabling of the 2025 budget yesterday, a Consumer Credit Commission will be established as the new authority regulating non-bank credit providers and credit service providers in Malaysia, the central bank said.

“The CCC will regulate and supervise a range of entities currently not subject to any regulatory authority in Malaysia.

“This includes companies with ‘Buy Now Pay Later’ schemes, non-bank factoring and leasing companies, impaired loan buyers, debt collection agencies, and debt counselling and management agencies,” it said in a statement yesterday.

At present, the consumer credit oversight board task force, – led by the finance ministry, BNM and the Securities Commission Malaysia, is responsible for the finalisation of the CCA together with relevant ministries and agencies.

Other BNM initiatives under the budget include RM3.8 billion to fund micro, small and medium enterprises in carrying out digitalisation and automation, embracing sustainable and low-carbon practices, and increasing agrofood production.

In addition, the financing limit for Micro Finance Scheme by financial institutions has been doubled to RM100,000.

Grants worth RM20 million are also allocated for iTekad’s seed capital component and subsidising microentrepreneurs’ takaful protection.