The Ministry of Finance (Malaysia) announced that the Consumer Credit Act 2025 (Act 873) has entered into force from 1 March 2026 and that the Government has established the Consumer Credit Commission to strengthen consumer protection in Malaysia’s consumer credit market. The Act is positioned as a more comprehensive and integrated framework for regulating conduct across the consumer credit industry, including the development of Authorisation Standards and Conduct Standards, and an integrated framework and information set to support monitoring, supervision and enforcement. It also introduces licensing and registration expectations for market participants, requiring credit providers including buy now pay later scheme providers, leasing companies and factoring companies to be licensed by the Consumer Credit Commission, while credit service providers including debt collection agencies, impaired loan or financing acquisition companies, and debt counselling and management agencies must be registered. The licensing and registration requirements are set to take effect from 1 June 2026, with a six-month transition period for the industry to apply for a licence or registration under the Act.

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