The Ministry of Finance (Malaysia) published details of the proposed Consumer Credit Bill, positioning it as a single overarching law to regulate consumer credit businesses and related services, including digital offerings such as instant loans and buy now pay later. The bill is framed as a response to risks such as excessive charges, over-indebtedness and financial fraud associated with uncontrolled credit use and unethical lending. The proposed framework would require fair treatment by credit providers, mandate transparency in fees and charges, and introduce professional guidelines for debt collection management and dispute resolution. It also envisages registered channels through which consumers facing financial difficulty can access assistance and advice. A new Consumer Credit Commission would be established to supervise providers that previously operated without direct oversight, including leasing companies, factoring firms, debt collection agencies and non-bank digital financing providers, while also consolidating regulatory functions currently spread across multiple ministries and agencies. The Ministry indicated that implementation is intended to be phased, but did not provide a timetable.
Ministry of Finance (Malaysia) 2025-07-23
Malaysia's Ministry of Finance introduces Consumer Credit Bill to regulate consumer credit providers and establish a Consumer Credit Commission
The Ministry of Finance (Malaysia) proposed the Consumer Credit Bill to regulate consumer credit businesses, including digital services like instant loans and buy now pay later. It aims to address risks such as excessive charges and financial fraud by mandating fair treatment, transparency, and professional debt management guidelines. A new Consumer Credit Commission will oversee previously unregulated providers, consolidating regulatory functions across ministries.