KUALA LUMPUR: New laws will be introduced to regulate and monitor "Buy Now, Pay Later" (BNPL) schemes, says Deputy Finance Minister II Yamani Hafez Musa(pic).

       He added that this will be done through the enactment of the Consumer Credit Act in 2022, which aims to strengthen regulatory arrangements for all consumer credit activities, including providers of BNPL schemes.

       Yamani said that the Finance Ministry, Bank Negara Malaysia and the Securities Commission are spearheading a joint venture with relevant ministries and agencies to formulate a comprehensive legal framework.

       “This will be done with the enactment of the Consumer Credit Act 2022, whereby all creditors, including BNPL providers, will be subject to appropriate regulations,” he added.

       Yamani then said that the regulations are not only related to management but also risk control and consumer protection.

       “It will also include syariah compliance rules in conducting BNPL activities,” Yamani told the Dewan Rakyat during the Question-and-Answer session on Tuesday (March 15).

       Earlier, Lukanisman Awang Sauni (GPS-Sibuti) asked the Finance Minister to state whether the Government was closely monitoring the BNPL schemes on online shopping platforms and whether this payment method will pose a debt burden to consumers in the future.

       Yamani said that there was a need for consumer education on BNPL schemes, its terms and conditions, especially about hidden fees and charges and the impact on consumers’ credit ratings.

       “Even though they state the BNPL has zero percent interest, there are still various charges such as processing fees, administration fees and late charges if late payment is made,” he said.

       He also warned Malaysians that their credit ratings could be affected if they fail to settle their installments as certain BNPL operators could report to credit reporting agencies.

       “Instalment payments must also be made in full and on time as agreed to avoid penalty charges,” he said.

       Yamani also advised the public to constantly monitor all BNPL commitments made to ensure that their personal debt remained manageable.