Rodiyah Sapiee (GPS–Batang Sadong) said BNPL data should be excluded from the Central Credit Reference Information System (CCRIS), which is used to assess major loan applications such as for housing and vehicle financing.
“CCRIS is directly related to major loan eligibility such as for housing or vehicle financing, and if BNPL data is included, it could negatively impact the ability of lower-income users to obtain future financing,” she told the Dewan Rakyat when debating the Consumer Credit Bill 2025.
Instead, Rodiyah proposed the creation of a dedicated BNPL data centre under the Consumer Credit Commission (SKP) which would allow targeted monitoring of BNPL credit risks without affecting users’ primary credit histories.
“This will preserve BNPL’s effectiveness as a microcredit instrument and a symbol of hope,” she added.
Rodiyah cited a recent survey by Shopee’s BNPL service SPayLater, which found that 81% of 40,000 Malaysian users relied on BNPL for basic needs, including baby formula and to pay medical expenses.
“This proves that BNPL is not just a financial convenience, but also functions as a micro social safety net during emergencies,” she said.
She also suggested that the bill consider financial commitments at the household rather than the individual level.
“While BNPL limits are typically capped at RM2,000 or RM3,000 per person, in reality, a household may have several BNPL accounts that together exceed the family’s actual financial capacity. In the end, the burden falls on the head of the household,” she said.
Rodiyah also proposed giving BNPL exemptions to micro-businesses, which typically use the service as working capital to acquire short-term inventories.
Deputy finance minister Lim Hui Ying earlier tabled the Consumer Credit Bill 2025 for second reading at the lower house.
Lim said the bill had been drafted to regulate emerging credit providers such as BNPL companies, with the number of transactions increasing from 83.8 million in the second half of 2024 to 102.6 million in the first half of this year.
The total transaction value of BNPL rose from RM7.1 billion in the second half of last year to RM9.3 billion in the first half of this year, an increase of 31%, she said.
“This rapid growth in BNPL may pose risks of harm, especially to vulnerable credit users,” she said.
Under the bill, a statutory body known as the SKP will be created to regulate currently unregulated business sectors through a licensing and registration framework to protect those with loans not exceeding RM300,000.
Winding up the debate on the bill, Lim said the total BNPL loan amount as of June 30 was RM3.8 billion, adding that it only made up 0.2% of the overall household debt in Malaysia.
“Generally, the BNPL scheme is used for payments on food purchases, groceries, and transportation, with the average purchase per transaction being RM91,” she said, dismissing concerns on BNPL debt.
“Some 88% of active BNPL users have successfully repaid their loans in full by the designated installment due dates. Only less than 1% of users were completely unable to repay all their debt,” she said.
Although more than 70% of active BNPL users are low-income earners, she said the vast majority still had surplus in funds at the end of the month for savings and other expenses.