Mr Abu Hassan Alshari Yahaya
Executive Chairman of the Consumer Credit Commission
Mr Ankur Sehgal
CEO of CTOS Digital Bhd
Dato’ Indrani Thuraisingam
Vice President and Legal Advisor of FOMCA
Datin Rohanizam binti Talib
Corporate Communications Head of AKPK
Mr Alain Yee
Executive Director and CEO of ShopeePay
Puan Nirmala Supramaniam
Household Financial Education Head of AKPK
Mr Nigel William Kraal
Partner of Cheang & Arif
Ladies and gentlemen, Salam Malaysia Madani.
Credit plays an important role in our economy. When used wisely, it helps families manage expenses, invest in education, and buy assets. For businesses, credit helps them grow and create jobs.
Banks remain our main source of credit. But banks are not the only players. Non-bank credit providers — moneylenders, cooperatives, leasing and factoring companies, and more recently Buy Now Pay Later (BNPL) providers — play an increasingly important role, especially for groups that may not qualify for bank loans.
The widespread usage of BNPL shows that Malaysians are trying to access small amounts of credit. In 2025 alone, 7.5 million users made 243 million BNPL transactions worth RM21.3 billion — three times more than in 2023. Although BNPL only makes up a small share of household debt, its rapid growth in adoption among the youth — those 30 years old and below constitute around 40% of all BNPL transactions — including to purchase daily necessities and food, is a reflection of a deeper challenge of low wage. It is a cause for concern.
Over the years, the Government and Bank Negara have taken measures to prevent households from becoming overly indebted and to ensure banks treat borrowers fairly. Lately, new risks have emerged that require us to update the regulatory framework.
First, we need to manage the risks posed by unregulated credit providers. BNPL providers, debt collection companies and other operators outside the traditional financial system are not covered under existing laws. This creates risks such as unfair terms, hidden fees, and aggressive debt collection.
Second, oversight of the credit industry is currently spread across multiple ministries and agencies. Each operates with its own mandate and standards. This fragmentation increases the risk of inconsistent enforcement and leaves room for irresponsible behaviour.
These gaps are what the Government aims to address.
Consumer Credit Act 2025 (CCA): What It Means
Parliament passed the landmark Consumer Credit Act in 2025, which was gazetted on 31 December 2025 and came into force on 1 March 2026. This is a major milestone for Malaysia’s credit landscape. The Act introduces a more coordinated and consistent approach to regulating consumer credit. It complements existing laws and fills important gaps.
A key component of the CCA is the establishment of Suruhanjaya Kredit Pengguna (SKP) — an independent body that will regulate six currently unregulated sectors, including BNPL, leasing and factoring companies, debt collection agencies, impaired loan buyers and debt counselling and management agencies.
The Act also sets up an Advisory Committee to improve coordination between ministries and agencies and ensure consistent enforcement.
Together, these reforms reflect the Government’s commitment to fairer outcomes for consumers and a more level playing field for industry players. The recent amendments to the Hire-Purchase Act (HPA) 2025 — which remove outdated interest calculation methods in favour of more transparent ones — further demonstrate our seriousness in this regard.
What Happens Next
Licensing for credit providers and registration for credit service providers will begin on 1 June 2026, with a six-month transition period to support smooth implementation. The SKP has already begun operations on 1 March 2026, focusing on issuing the necessary standards for authorisation and conduct regulation, and ensuring the licensing and registration processes run smoothly.
What does this mean for consumers and industry?
For consumers, the CCA provides stronger protection. It sets out basic rights to fair treatment and prohibits unfair or predatory lending practices. SKP will issue rules and monitor compliance.
For industry, the CCA brings greater clarity and consistency, which will help foster healthy competition. It will also ensure irresponsible players do not have room to exploit borrowers.
Ultimately, the Act supports an ecosystem that rewards providers who deliver fair value and good practices.
The Role of Credit Reporting Agencies (CRAs)
Credit reporting agencies play a crucial role in strengthening Malaysia’s credit system. By providing reliable credit data and insights, CRAs help lenders make more accurate decisions, and help consumers understand and manage their own financial health.
While the Central Credit Reference Information System or CCRIS remains the main source of banking-related credit information, CRAs have the potential to expand access to non-bank credit data. This can reduce information gaps and further prevent over indebtedness.
I encourage CRAs to continue innovating, adopt new technologies, and strengthen data quality, cybersecurity and interoperability across the ecosystem.
Moving Towards a Fair and Responsible Credit Landscape
The CCA is a major step forward in ensuring Malaysia’s credit ecosystem is responsible, inclusive and resilient. It helps protect consumers while supporting sustainable industry growth. The Government, together with the Suruhanjaya Kredit Pengguna or SKP and other agencies, will continue working closely with industry players and consumer groups to ensure this reform achieves its intended outcomes.
Thank you. I wish all of you a productive and meaningful conference.