Berkshire Media Insights | 16 October 2026 | Consumer Credit & Regulation

Introduction: a credit market being rewired

Tap “PayLater” at checkout, split a RM300 purchase into three instalments, and walk away with the goods today. For millions of Malaysians, Buy Now Pay Later (BNPL) has become as routine as an e-wallet top-up. Yet until this year, BNPL sat outside Malaysia’s consumer credit laws: no licence was required to offer it, no regulator was dedicated to it, and no single rulebook defined how providers had to treat borrowers.

That changed when the Consumer Credit Act 2025 (Act 873) came into force on 1 March 2026 and created a new regulator, the Suruhanjaya Kredit Pengguna (SKP), or Consumer Credit Commission. BNPL providers, leasing and factoring companies must now be licensed by SKP, while debt collectors, impaired-loan buyers and debt counselling agencies must register with it. The industry was given a six-month transition window from 1 June 2026, which means the licence application deadline of 30 November 2026 is now only weeks away.

This guide explains, in plain language, how the BNPL industry works in Malaysia, who governs which type of credit, how a licensed moneylender differs from an illegal Ah Long, and how SKP’s phased blueprint will gradually bring the entire non-bank credit market under one consistent framework. It is written for consumers first, but lenders, BNPL operators, policymakers and the general public will find the regulatory roadmap equally useful.

BNPL in Malaysia by the numbers

BNPL started gaining traction around 2020, carried by pandemic-era e-commerce, and has since become the country’s fastest-growing form of consumer credit. The Consumer Credit Oversight Board Task Force reported that transactions grew from 30.6 million (RM2.7 billion) in the first half of 2023 to 102.6 million (RM9.3 billion) in the first half of 2025, with 16 players offering BNPL schemes. Speaking at an industry event, SKP’s leadership noted that in 2025 alone, 7.5 million users made 243 million BNPL transactions worth RM21.3 billion — three times the 2023 level.

Sources: BNM Financial Stability Review 2H2024 via Bernama; BNM FSR 2H2025 via Bernama; MOF parliamentary reply via theSun; MOF Q1 2026 figures as reported in Malaysian media and tracked in Berkshire Media’s SKP social monitoring dashboard.

Two readings of these numbers co-exist. Bank Negara Malaysia (BNM) stresses that BNPL remains small at roughly 0.3% of household debt and that overdue rates are well below the six per cent seen when the segment first emerged in early 2023. At the same time, the central bank describes BNPL’s rapid expansion as a key area of surveillance. The concern is less about systemic risk and more about who is borrowing: a Bank Islam economic research note highlights that around 73% of BNPL users are low-income earners, and market leaders report that most of their users are young adults.

Market concentration is also high. The Edge reported that ShopeePay’s SPayLater holds more than half of active BNPL account holders, with Atome holding about a quarter of the market. Other familiar names include Grab PayLater and FavePay Later.

Who governs credit in Malaysia?

For decades, the protection a Malaysian borrower enjoyed depended on where the money came from. As The Star observed, banks were tightly supervised, moneylenders and pawnbrokers had their own laws, and newer players such as BNPL apps and debt collectors operated in a regulatory grey zone. The Consumer Credit Act 2025 is designed to replace that patchwork with one baseline standard. Today, the landscape looks like this:

To keep these agencies pulling in the same direction, SKP is supported by an Advisory Committee that brings together regulators and ministries — including KPDN and KPKT — to coordinate policy, promote consistent implementation of the Act, and collaborate on capacity building and research.

SKP: the new consumer credit watchdog

From task force to statutory regulator

SKP grew out of the Consumer Credit Oversight Board (CCOB) Task Force, an interim body led by the Ministry of Finance, BNM and the Securities Commission Malaysia that drove the drafting of the Consumer Credit Bill. The milestones moved quickly:

What SKP does

According to SKP’s own FAQs, the Commission licenses and registers industry participants, sets standards, supervises credit providers and credit service providers, manages complaints, and enforces the Act. It can suspend or revoke licences and registrations, and unlicensed entities — including foreign BNPL operators targeting Malaysians — face enforcement action. The Act itself pursues three objectives set out on SKP’s legislation page:

• Regulate conventional and Shariah-compliant credit businesses, as well as credit service businesses.
• Protect the rights and interests of credit consumers.
• Build a fair, responsible and professional credit industry.

The SKP blueprint: how regulation will roll out

Rather than switch everything on at once, the Government chose a phased transformation so the industry can adjust without disruption while SKP builds capacity. The blueprint, as published by SKP and earlier outlined by the CCOB Task Force, runs in three phases:

The end outcome: what consumers and the industry gain

• One baseline of protection. Whether you borrow from a bank, an app or a moneylender, the same duties of fair treatment and transparency apply.
• Responsible lending by design. Mandatory affordability assessments should curb the stacking of multiple BNPL limits that borrowers cannot sustain.
• One place to check and complain. A single regulator, a public register of authorised entities and a one-stop complaints channel reduce the confusion of “who do I report this to?”
• A level playing field. Licensed, well-governed providers are no longer undercut by operators who skip compliance — which supports sustainable industry growth.
• Fewer people pushed towards Ah Longs. A trusted, well-understood licensed credit market is the most effective long-term competitor to illegal lending.

Deep dive: what the new rules mean for BNPL users

On 5 June 2026, SKP issued its Authorisation Standards and Conduct Standards. The Authorisation Standards set out who may be licensed and how; the Conduct Standards set out how authorised entities must behave towards consumers. Drawing on these and on statements made in Parliament, the practical changes for BNPL users include:

• Affordability checks before credit is granted. Providers must assess your income and existing commitments to judge whether you can repay, rather than simply offering a limit at sign-up. Finance Minister II Amir Hamzah Azizan described affordability assessment as a key requirement for BNPL providers.
• Fair treatment and clear communication. Every credit provider now carries a legal duty to treat consumers fairly and disclose terms transparently — including late fees and account reactivation charges, which The Edge reported typically range from RM10 to RM23.
• Fit-and-proper, governed providers. Licensed operators must meet minimum governance, financial and fit-and-proper standards, and submit periodic reports to SKP.
• Rules for debt collectors too. Because debt collection agencies must register with SKP, harassment by collectors is now a conduct issue SKP can act on. SKP has also clarified publicly that while banks may lawfully sell bad loans, collectors acting on those loans still cannot harass borrowers.
• A route for complaints. Raise a complaint with the provider first; if it is not resolved, you can escalate to SKP. Complaints about moneylenders and pawnbrokers still go to KPKT during Phase I.

For lenders and BNPL operators: a quick compliance checklist

• Confirm whether your activity falls within Phase I scope (BNPL, leasing, factoring, debt collection, impaired-loan acquisition, debt counselling and management).
• Submit your licence or registration application before the transition window closes on 30 November 2026.
• Map your onboarding journey against the Conduct Standards — especially affordability assessment, disclosure of fees, and treatment of customers in arrears.
• Audit third-party debt collectors and outsourcing partners; their conduct reflects on your licence.
• Prepare governance, fit-and-proper and periodic reporting processes, and a complaints-handling workflow.
• Monitor public conversation about your brand: fraud complaints, collector behaviour and “cash-out” schemes linked to your platform are early warnings of conduct risk.

Licensed moneylenders vs Ah Longs: knowing the difference

Not everyone qualifies for a bank loan or a BNPL limit. For these borrowers, licensed moneylenders — rebranded by KPKT as “Kredit Komuniti” (Community Credit) — are a legal option. Illegal moneylenders, known as Ah Long or ceti haram, are not. The difference matters enormously.

KPKT Minister Nga Kor Ming has repeatedly urged the public to verify lenders through the i-KrediKom app or by contacting the ministry, stressing that licensed lenders are bound by interest caps and collection rules. KPKT has also said that about 70,000 borrowers each year take loans below RM1,000 from licensed moneylenders — a reminder of how many households rely on small-ticket credit.

The Ah Long problem has gone digital

Illegal lending remains stubborn. The Home Ministry told Parliament that 1,000 cases were reported in 2021 and 1,009 in 2022, noting that Ah Long offers persist because they are perceived as easier and faster than licensed channels. In 2025, the MCA Public Services and Complaints Bureau recorded 281 Ah Long cases involving RM26.2 million in debts between January and mid-September alone. Bukit Aman’s Commercial Crime Investigation Department has warned that illegal lending has migrated to cyberspace as enforcement shuts physical premises, and in June 2026 the MCA bureau raised concerns that syndicates were obtaining details of victims’ police reports to intimidate them.

Red flags of an Ah Long: loan offers via WhatsApp, SMS, Telegram or social media ads; approval “in minutes” with no documents; requests for an upfront “processing fee” before disbursement; demands for your ATM card, PIN or identity card; no licence number or a number that does not match KPKT records; and any threat of contacting your employer, family or neighbours.

Public sentiment: what Malaysians are saying

Regulation only works if the public understands it. Berkshire Media’s SKP social and PR monitoring dashboard analysed 1,181 relevant social media posts (filtered from 4,353 raw mentions) and close to 1,900 traditional media items published between 17 June and 15 September 2026. Several findings stand out:

• Sentiment leans negative. Across all topics, 17.7% of posts were positive, 47.7% neutral and 34.6% negative — roughly two negative posts for every positive one. BNPL was both the highest-volume and the most negative-leaning topic (35.6% negative).
• SKP’s name is barely visible. Only six of the 1,181 posts named “Suruhanjaya Kredit Pengguna” directly, even though SKP’s actions — BNPL licensing and the 30 November deadline — drove much of the conversation. The protections are landing; the regulator’s identity is not.
• Commitment-stacking and “cash-out” chatter. Users openly share stacked balances across several BNPL providers, and a notable cluster of posts seeks services that convert BNPL limits into cash (gestun), alongside commercial solicitations for the same — a practice that can push vulnerable users deeper into debt.
• Account-security fears. Some of the most-viewed negative stories involve BNPL balances allegedly drawn down through fraud or account compromise, a platform-trust issue distinct from overspending.
• “Better than an Ah Long.” Some mainstream coverage frames BNPL as a safer alternative to illegal loan sharks for people without other credit options — a relative, not unconditional, endorsement that underlines how closely the two issues are linked in the public mind.
• Youth debt and the riba question. Posts linking youth bankruptcy to BNPL and FOMO-driven spending attracted strong engagement, political youth wings called for tighter rules, and Islamic-finance commentary raised questions about riba in BNPL products.

Traditional media, by contrast, reads calmer and more factual. Berkshire Media’s SKP Q3 2026 integrated media monitoring dashboard tracks how coverage across print, online, TV and radio evolved over July to September 2026, including subtopic breakdowns, platform comparisons and issue-risk signals. Much of the quarter’s coverage was driven by the official statistic of 8 million BNPL accounts and RM5.3 billion outstanding, syndicated across Malay, English and Chinese outlets.

Awareness of licensed moneylenders

Awareness of the difference between licensed lenders and Ah Longs remains uneven. The persistence of Ah Long cases, the migration of illegal lending to social media, and the need for KPKT to keep reissuing public warnings all suggest that many borrowers still cannot easily tell a licensed “Kredit Komuniti” operator from an illegal one — particularly online. The monitoring data reinforces this: when people discuss credit online, they talk about outcomes (debt, harassment, fraud, rejected loan applications) far more than about who is licensed or which agency to turn to. Academic studies point in the same direction, with research on Generation Z in the Klang Valley finding limited understanding of BNPL terms and long-term financial implications.

A practical checklist for consumers

• Verify before you borrow. For BNPL, check that the provider is authorised by SKP. For moneylenders, check KPKT or the i-KrediKom app. For banks and approved institutions, check BNM and its Financial Consumer Alert List of unauthorised entities.
• Count every instalment as debt. Add up all BNPL, credit card and loan commitments before tapping “PayLater” again.
• Avoid “cash-out” (gestun) schemes. Converting a credit limit into cash usually carries hidden costs and can breach provider terms.
• Secure your accounts. Use strong authentication on shopping and e-wallet apps and report unauthorised BNPL transactions to the provider immediately.
• Never deal with an Ah Long. If you are threatened, lodge a police report and contact KPKT.
• Get free help early. If repayments are becoming unmanageable, the Agensi Kaunseling dan Pengurusan Kredit (AKPK) offers free financial counselling and debt management support.

Frequently asked questions

Is BNPL regulated in Malaysia?

Yes. Since 1 March 2026, BNPL is regulated by Suruhanjaya Kredit Pengguna (SKP) under the Consumer Credit Act 2025. BNPL providers must be licensed by SKP, with a transition period ending on 30 November 2026.

What is the maximum interest a licensed moneylender can charge?

Under the Moneylenders Act 1951, licensed moneylenders may charge up to 12% a year on secured loans and 18% a year on unsecured loans, and total interest cannot exceed the principal.

How do I check whether a moneylender is licensed?

Use the KPKT website or the i-KrediKom app, or contact KPKT directly. A licensed lender should display a valid licence at its registered business address.

Can I complain to SKP about a moneylender or pawnbroker?

Not yet. During Phase I, KPKT remains the regulator for moneylenders and pawnbrokers. These activities are scheduled to transfer to SKP in Phase II (2028–2030).

What happens to BNPL providers that are not licensed after the deadline?

Unlicensed entities carrying on regulated business are subject to enforcement action by SKP. Consumers should avoid providers that cannot show SKP authorisation.

Conclusion: protection that depends on visibility

Malaysia’s consumer credit market is in the middle of its most significant overhaul in decades. To recap:

• BNPL is now mainstream credit, with around 8 million accounts and more than RM5 billion outstanding, concentrated among young and lower-income users.
• The Consumer Credit Act 2025 and SKP bring BNPL and five other previously unregulated activities under licensing, registration and conduct standards, with the transition window closing on 30 November 2026.
• SKP’s phased blueprint will extend this framework to moneylending, pawnbroking and hire purchase between 2028 and 2030, with a possible Twin Peaks architecture beyond 2031.
• Licensed moneylenders operate within strict interest and collection rules; Ah Longs do not, and they are increasingly operating online.
• Public sentiment remains wary, awareness of who is licensed is uneven, and SKP’s own name is largely absent from the conversations its work is shaping.

Laws and standards set the rules, but enforcement and implementation depend on seeing what is actually happening in the market. Illegal lenders advertise in comment sections and messaging groups; “cash-out” schemes circulate on Threads; fraud complaints surface first on YouTube and TikTok; and narratives that BNPL is “a trap for the rakyat” can spread faster than any official explainer. Comprehensive, continuous monitoring of social and traditional media — across Malay, English, Chinese and Tamil — gives regulators an early-warning system: it flags emerging conduct risks, identifies unlicensed operators, measures whether public education is working, and shows where SKP’s strategy and objectives are gaining or losing public trust. As the Consumer Credit Act moves from Phase I to Phase II, that intelligence will be essential to protecting consumers and building the fair, responsible and professional credit industry the Act envisions.

References

Academic references

• Alias, A. A., Zaidi, F. Z., & Mohd Fauzey, N. F. S. (2025). Buy now, think later? A conceptual take on Malaysian BNPL choices. International Journal of Management, Finance and Accounting, 6(2), 200–218. shdl.mmu.edu.my/14901
• Bank Islam Malaysia Berhad, Economic Research. (2025, July 29). Thematic: The double-edged sword of Buy Now Pay Later (BNPL). bankislam.com
• Buy Now Pay Later mechanism trigger impulsive purchase behaviour among Malaysian millennials generation. (2024). International Journal of Business and Technology Management, 6(1). https://doi.org/10.55057/ijbtm.2024.6.1.4
• Consumer Financial Protection Bureau. (2022). Buy now, pay later: Market trends and consumer impacts. Washington, DC: CFPB.
• deHaan, E., Kim, J., Lourie, B., & Zhu, C. (2024). Buy now pay (pain?) later. Management Science, 70(8).
• Determinants of consumer intention in purchasing through Buy Now, Pay Later (BNPL) using the Theory of Planned Behaviour. (2025). Journal of Administrative Science, Universiti Teknologi MARA. journal.uitm.edu.my
• Di Maggio, M., Katz, J., & Williams, E. (2022). Buy now, pay later (NBER Working Paper No. 30508). National Bureau of Economic Research.
• Gerrans, P., Baur, D. G., & Lavagna-Slater, S. (2022). Fintech and responsibility: Buy-now-pay-later arrangements. Australian Journal of Management, 47(3), 474–502.
• Guttman-Kenney, B., Firth, C., & Gathergood, J. (2023). Buy now, pay later (BNPL)… on your credit card. Journal of Behavioral and Experimental Finance, 37, 100788.
• Sarifuddin, S. (2025). Buy now, pay later or pain later? A qualitative study on the adoption of BNPL and financial risks among Generation Z consumers in Klang Valley. International Journal of Social Policy and Society, 21. ijsps.ism.gov.my

Official and regulatory sources

• Suruhanjaya Kredit Pengguna. (2026). Enforcement of the Consumer Credit Act 2025 and the establishment of the Consumer Credit Commission [Media release]. skp.gov.my
• Suruhanjaya Kredit Pengguna. (2026, June 5). SKP issues Authorisation Standards and Conduct Standards to guide consumer credit sector [Media release]. skp.gov.my
• Suruhanjaya Kredit Pengguna. (2026). Akta Kredit Pengguna 2025 — objectives and phased implementation. skp.gov.my
• Suruhanjaya Kredit Pengguna. (2026). Frequently asked questions. skp.gov.my
• Suruhanjaya Kredit Pengguna. (2026). Advisory Committee. skp.gov.my
• Ministry of Finance Malaysia. (2026). Penguatkuasaan Akta Kredit Pengguna 2025 dan penubuhan Suruhanjaya Kredit Pengguna [Media release]. mof.gov.my
• Consumer Credit Oversight Board Task Force. (2026). Suruhanjaya Kredit Pengguna announces its leadership lineup. ccob.my
• Bank Negara Malaysia. (2026, March 31). Financial Stability Review — Second Half 2025. bnm.gov.my
• Bank Negara Malaysia. Financial Consumer Alert List. bnm.gov.my
• Ministry of Housing and Local Government (KPKT). Licensed moneylenders (Kredit Komuniti) and i-KrediKom. kpkt.gov.my
• Berkshire Media Sdn. Bhd. (2026). SKP Q3 2026 Media Monitoring Dashboard. berkshiremedia.com.my
• Berkshire Media Sdn. Bhd. (2026). SKP PR & Social Monitoring Dashboard, 17 June – 15 September 2026. berkshiremedia.com.my

News sources

• Bernama. (2025, March 24). Risks from BNPL debt contained — BNM. bernama.com
• Bernama. (2026, March 31). Consumer Credit Commission establishment timely to safeguard consumers from credit service, BNPL providers — BNM. bernama.com
• Malay Mail. (2026, March 31). BNM says new Consumer Credit Commission will oversee BNPL sector amid rising debt and rapid expansion. malaymail.com
• Malay Mail. (2023, April 9). CCA to provide clearer regulatory framework for consumer credit biz, better consumer protection. malaymail.com
• The Star. (2026, May 14). Suruhanjaya Kredit Pengguna steps up industry readiness towards authorisation implementation. thestar.com.my
• The Star. (2026, June 5). SKP issues standards to regulate BNPL, five other consumer credit activities. thestar.com.my
• The Star. (2026, September 1). Borrow smartly, borrow safely [Letter]. thestar.com.my
• The Edge Malaysia. (2025, December 8). BNPL players in Malaysia. theedgemalaysia.com
• The Vibes. (2025, August 4). Govt to tighten regulation of BNPL sector under new consumer credit law. thevibes.com
• The Vibes. (2025, June 28). KPKT: Public warned against illegal moneylenders. thevibes.com
• The Vibes. (2025, September 21). Those who seek loans from ah longs mostly gambling addicts, says Michael Chong. thevibes.com
• The Vibes. (2026, June 22). How do “Ah Longs” obtain information from police reports filed by victims? thevibes.com
• theSun. Public advised to avoid sinister web of loan sharks. thesun.my
• theSun. BNPL loans remain a small fraction of Malaysian household debt. thesun.my
• The Malaysian Insight. 898 people arrested for illegal moneylending since start of 2023. themalaysianinsight.com
• RingitPlus. (2026). BNPL use among Malaysian youth raises concern as new consumer credit law takes effect. ringgitplus.com
• Berita RTM. (2025, September 4). RUU Kredit Pengguna 2025 diluluskan, tubuh Suruhanjaya Kredit Pengguna. berita.rtm.gov.my
• Berita RTM. (2026, June 5). SKP perkenal standard baharu perkukuh industri kredit pengguna. berita.rtm.gov.my