KUCHING: The Consumer Credit Bill (CCB) and the establishment of the Consumer Credit Commission (CCC) are set to mark a major step forward in safeguarding Malaysians from unregulated lending and risky credit practices,
Head of Credit Counselling and Debt Management Agency (AKPK) Kuching Yeo Wee Kiak said the new frameworks will regulate Buy Now Pay Later (BNPL), instant loans, and other emerging credit services that previously fell outside traditional financial oversight.
“From AKPK’s perspective, this means greater transparency, responsible lending standards, and more consistent consumer protection across all credit providers,” Yeo told Sarawak Tribune.
He added that AKPK will continue to play a key role through financial education, advisory services, and debt management programmes aligned with these reforms.
Highlighting the common risks of BNPL and instant loans, Yeo said many consumers often overestimate their repayment ability, neglect to read terms and conditions, or use short-term credit for impulse and lifestyle purchases.
“To borrow responsibly, consumers should track repayment dates, limit the number of credit arrangements, and apply what we call the 3P Formula: Purpose of borrowing, Payment Capacity, and Payment History,” he said.
“Before taking on debt, always ask — do I really need this, and can I afford it without compromising essentials?”
Yeo acknowledged that awareness of such risks is improving but noted that many Malaysians, especially young adults, still underestimate the long-term impact of these services.
“These options may seem convenient, but without financial literacy, they can easily lead to debt traps,” he cautioned.
“That’s why AKPK continues to expand outreach programmes, digital tools, and advisory services to build stronger financial habits like budgeting, saving, and prioritising needs over wants.”
Following this, Yeo urged individuals who find themselves struggling should not delay seeking help.
“Early intervention is key. AKPK provides free financial advisory, a Debt Management Programme (DMP) with panel financial institutions, and personalised advice to help Malaysians regain financial stability,” he explained.
Since its establishment in 2006 up to May 2025, AKPK has provided free advisory services to nearly 1.45 million individuals and helped more than 585,000 borrowers restructure their debts through the DMP.
Overall, the agency has reached nearly 14 million Malaysians through its financial education and support initiatives.
“Our core message is simple: it’s never too early or too late to seek help,” Yeo said.
“Whether you’re struggling or just want to take control, AKPK is here to help Malaysians build resilience, confidence, and peace of mind in their financial journey.”
