By Shankaran Nambiar

East Asia Forum-July 3, 2025

The rapid growth of ‘buy now, pay later’ schemes in Malaysia has raised concerns about consumer protection and rising household debt. With over 5 million users and expanding into sectors like healthcare and travel, the relatively untested loan services risk encouraging over-borrowing. In response, Malaysia’s central bank Bank Negara Malaysia has proposed regulatory reforms. The Consumer Credit Bill 2025 will also license the providers of ‘buy now, pay later’ services. These measures promote responsible lending, protect consumers from financial hardship, and seek to reduce long-term debt burdens in an increasingly credit-driven and financially complex economy.

Read more at: https://eastasiaforum.org/2025/07/03/regulating-malaysias-buy-now-pay-later-market/

First published in East Asia Forum