Malaysia’s BNPL debt is controlled at 0.3% of household debt, with overdue payments at 3.3% as new regulations take effect this year.
KUALA LUMPUR: The risk from Buy Now, Pay Later consumer loans remains under control and is expected to stay at just 0.3% of Malaysia’s total household debt.
The Ministry of Finance provided this assessment in a written parliamentary reply to Ku Abd Rahman Ku Ismail regarding the rise in BNPL users and government monitoring measures.
As of December 31, 2025, total BNPL loans stood at RM4.9 billion. Overdue loans amounted to RM160.2 million, representing 3.3% of the total BNPL portfolio.
“These figures reflect that the debt burden of BNPL users is manageable,” the MOF stated.
The number of BNPL users surged to 7.5 million by the end of 2025. This marks a significant increase from the 2.6 million users recorded in 2023.
To strengthen consumer protection, the government has introduced regulatory oversight for credit businesses including BNPL firms. This is achieved through the Consumer Credit Act 2025 (Act 873), which is scheduled to come into force this year.