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THE government has introduced the Consumer Credit Bill (RUUKP), a landmark piece of legislation designed to curb irresponsible lending and protect the public from the growing dangers of unregulated credit and digital financial services.
Announcing the Bill, the Ministry of Finance (MOF) said: “RUUKP is a comprehensive approach to safeguarding Malaysians from the financial risks of uncontrolled credit usage and unethical lending practices.”
The proposed Act will serve as the central legal framework for regulating all credit-related businesses and services in the country. Its objectives include promoting fair conduct by credit providers, enforcing transparency in the imposition of fees, and introducing professional standards for debt recovery and dispute resolution.
“In an era of rapid financial digitalisation, consumers are now exposed to a wide array of credit offers — from instant loans to Buy Now Pay Later (BNPL) schemes — often accompanied by hidden risks such as excessive charges, unsustainable debt, and financial scams,” the Ministry noted.
For the first time, the legislation will bring entities such as leasing companies, factoring firms, debt collection agencies, and non-bank digital lenders under direct regulatory supervision through a new statutory body — the Consumer Credit Commission (SKP).
This commission will also absorb and streamline existing supervisory roles previously spread across several ministries and agencies, creating a unified oversight mechanism to ensure consistency and efficiency across the credit ecosystem.
The Bill includes measures to ensure that consumers in financial distress can seek help and advisory support through legally recognised and regulated channels.
Describing the legislation as “a critical government initiative to create a safer, more professional, and inclusive consumer credit ecosystem”, the Ministry emphasised its long-term significance in shielding the public from exploitative financial practices.
The RUUKP will be rolled out in phases, with its full implementation expected to reshape the national financial landscape — placing consumer protection at the core of all credit-related activity. - July 23, 2025
