KUCHING: Buy Now Pay Later (BNPL) schemes are becoming a double-edged sword — offering short-term relief for many households, but potentially driving families into hidden and unmanageable debt if left unregulated.
Raising the issue in Parliament, Batang Sadong MP Rodiyah Sapiee warned that BNPL has outgrown its role as a financial trend. It is now a critical source of micro-credit for informal traders, small entrepreneurs and low-income families grappling with rising living costs.
“BNPL’s popularity among millennials and Gen Z shows its potential. But without proper regulation, it can lead to impulsive spending and unsustainable debt,” she said during the debate on the Consumer Credit Bill (RUUKP) in the Dewan Rakyat yesterday.
Rodiyah supported the Bill’s aim to establish a Consumer Credit Commission and introduce a full regulatory framework, but called for refinements in three key areas: Household-level credit monitoring, conditional exemptions for micro-businesses, a separate data registry for BNPL activity
She noted that while BNPL providers typically limit financing to RM2,000 per person, this cap is easily circumvented when multiple household members open accounts. “Although approvals are granted individually, the financial burden often falls on one head of household,” she said.
To prevent overexposure, she urged regulators to adopt a household-level lens, warning of what she described as “hidden cumulative debt.”
Rodiyah also highlighted how many micro-entrepreneurs rely on BNPL for working capital, especially for inventory purchases. She proposed a special “BNPL for Micro-Businesses” category that would grant conditional exemptions to registered traders with basic cash flow records, shielding them from consumer-targeted restrictions.
She further called for the creation of a dedicated BNPL registry — separate from the Central Credit Reference Information System (CCRIS) — to avoid penalising low-income borrowers’ credit scores.
“Including BNPL data in CCRIS could hurt their ability to secure essential loans in the future,” she said. The proposed registry, she added, should fall under the new Consumer Credit Commission and be designed to track repayment behaviour without affecting core financial profiles.
Citing a Shopee SPayLater survey, she noted that 81 per cent of 40,000 respondents used BNPL for emergencies such as baby formula, medical bills, vehicle repairs and insurance. “This shows BNPL is not just a convenience — it’s a micro social safety net,” she said.
Rodiyah also stressed the need for strong personal data protection and cybersecurity standards, given BNPL’s online nature.
“Digital systems used by providers must comply with strict security standards to prevent misuse and cyber threats,” she said.
“I support the Bill’s goal of building a transparent, competitive and responsible credit market. With careful and forward-looking implementation, RUUKP can shape a credit system that is safe, inclusive and people-friendly.”
Commenting on her speech, Universiti Malaysia Sarawak (UNIMAS) senior lecturer Dr Dzul Hadzwan Husaini agreed the bill comes at a critical time.
“The widening gap between incomes and living costs has made BNPL a financial lifeline. It supports not just consumer spending, but also small business activity — and can reduce reliance on loan sharks,” he said.
However, he cautioned against overregulation. “The Bill should avoid becoming as restrictive as credit card rules. Instead, it must support responsible innovation and build a credit ecosystem that empowers, not penalises, everyday Malaysians.”
