SHAH ALAM, Aug 29 — The Finance Ministry (MOF) reports a significant rise in Buy Now Pay Later (BNPL) usage, with youths under 30 accounting for nearly 40 per cent of transactions in the first half of the year.
According to the ministry, BNPL transactions between January and June this year totalled 102.6 million, amounting to RM9.3 billion, marking a 31 per cent increase compared to RM7.1 billion recorded in the second half of 2024.
“As of June 30, 2025, the outstanding balance of BNPL loans stood at RM3.8 billion, equivalent to 0.2 per cent of Malaysia’s total household debt.
“The amount of overdue BNPL loans remains manageable at RM121.8 million, or 3.2 per cent of total BNPL loans.
“Of this, RM56.6 million, or 46.5 per cent, involves accounts held by youths,” MOF said in a Parliamentary written reply.
The ministry stated that despite the increase, a 2024 study by the Consumer Credit Oversight Board Task Force found that most BNPL users demonstrated responsible financial behaviour, with 88 per cent paying on time, 12 per cent settling late but in full, and fewer than 0.5 per cent unable to repay.
To address potential risks, the ministry said the Consumer Credit Commission (SKP) has pledged to take a proactive approach to regulating the industry and promoting responsible borrowing practices.
In collaboration with the Credit Counselling and Debt Management Agency (AKPK), MOF said the government is providing free financial counselling, debt management programmes, and literacy workshops on topics such as cash flow management, responsible credit use, and smart spending.
It stated that the Financial Education Network (FEN) is also strengthening financial literacy efforts through initiatives such as FEN Proaktif and Financial Literacy Month, which target youths and the wider public with education on prudent financial management, digital finance awareness, and fraud prevention.
