In short, rising card and BNPL use is drawing government attention to household debt. Deputy Finance Minister Lim Hui Ying notes that credit and charge cards on online marketplaces have become a major channel for consumer financing, and that the government is actively addressing growing debt from these sources.
As of September 2025, outstanding credit card debt totaled RM50.7 billion, Lim reported on Wednesday, December 3. Overdue balances stood at RM551.8 million, about 1.1% of all credit and charge card debt. BNPL loans reached RM4.2 billion across seven million active accounts, representing roughly 0.3% of total household debt. Overdue BNPL debt was RM147.7 million, or 3.5% of BNPL borrowings, Lim added.
A charge card is described as a short-term payment instrument that requires full repayment at the end of each billing cycle. Lim emphasized that both credit cards and BNPL offer flexible payment options for users who manage their obligations responsibly, while the government remains vigilant to ensure lenders exercise prudence and that consumers are safeguarded against unsustainable debt.
Looking ahead, the Consumer Credit Act 2025 is expected to be enacted by year’s end to regulate BNPL providers. The law will target providers offering credit via e-commerce platforms, requiring non-bank lenders to perform proper creditworthiness and affordability assessments, establish fair terms, maintain transparent fees, and follow responsible debt collection practices.
These statements came as Datuk Seri Jalaluddin Alias (BN–Jelebu) raised concerns that aggressive BNPL collections could resemble a modern loan-sharking system, including threats. He asked whether tighter BNPL eligibility criteria and platform regulation would help shield younger people from debt.
Lim replied that financial literacy would remain a key government focus, delivered through the Financial Education Network in collaboration with the Ministry of Digital to promote fair and transparent lending practices. She stressed that nationwide efforts to educate the public will continue, starting in schools, because BNPL makes credit readily accessible and education is essential to prevent youth from falling into debt traps.
