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THE nation’s exposure to Buy Now, Pay Later (BNPL) lending remains modest and manageable despite a sharp rise in users, the Ministry of Finance said, as the Government prepares to bring BNPL providers under formal regulation this year.
In a written reply published on the Parliament website, the ministry said risks associated with BNPL consumer financing schemes were still at a controlled level and were expected to account for just 0.3 per cent of total household debt nationwide.
As at 31 December 2025, total BNPL lending stood at RM4.9 billion, while unpaid loans amounted to RM160.2 million, or 3.3 per cent of the overall BNPL portfolio.
“These figures reflect that the debt burden of BNPL users is manageable,” the ministry said.
The response was issued to Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu), who had queried the growing number of BNPL account holders and the Government’s measures to monitor them.
According to the ministry, the number of BNPL users rose significantly from 2.6 million in 2023 to 7.5 million by the end of 2025, reflecting the rapid expansion of the short-term, point-of-sale credit model.
To strengthen consumer protection and ensure responsible lending practices, the Government has introduced regulatory oversight for credit businesses, including BNPL operators, through the gazetting of the Consumer Credit Act 2025 (Act 873), which is scheduled to come into force this year.
The move is aimed at enhancing supervision of the fast-growing sector while safeguarding consumers amid rising participation in alternative credit schemes. - March 3, 2026