BFM Ringgit & Sense Podcast: How the Consumer Credit Bill 2025 Matters for Everyday Malaysians

The Consumer Credit Bill 2025, due to be gazetted by end of 2025, will serve as the primary law that governs Malaysia’s consumer credit activities. On BFM’s Ringgit & Sense, Yuvarajan Periyan, co-founder of Uno Advisers Sdn. Bhd. and a licensed financial planner, joined producer Jake Lim to discuss why this bill matters and how it could strengthen consumer protection in the credit space. 

During the session, Yuvarajan shared his opinion on why this new law is an important step forward, especially with many financial tools such as Buy Now Pay Later (BNPL), leasing, and money lending being accessible to Malaysians. Currently, there is no proper regulations currently in place for these services, thus creating a “grey area” and loopholes which could cause consumers to be exploited without them realising it.

As an example, Yuvarajan shared his personal experience when he wanted to purchase a hairdryer using BNPL. The package offered was to sign up for a 6-month plan and an RM200 discount would be given. However, after doing some quick calculations, Yuvarajan discovered that the RM200 would amount to almost nothing after factoring in the additional interest and fees accrued. However, for average consumers who may be less financially savvy, they may be enticed by the discount and sign up for the extended BNPL period.

Jake and Yuvarajan then discussed on the formation of the Consumer Credits Commission, a governing body which will supervise non-bank credit activities such as vetting a consumer’s eligibility for BNPL, making sure platform providers adhere to ethical practices, and also giving consumers the ability to file complaints and report any suspicious activities.

However, Yuvarajan also shared that he hopes that greater lengths are taken to protect consumers’ data against third-party entities to prevent scams from occurring. He also voiced out that he hopes that information will be more transparent and spelt out clearly for consumers, especially in terms of details such as interest charged based on credit duration, how much penalty fees will be incurred, terms and conditions, etc. Another safety feature that can be useful is facial recognition to be scanned during checkout, ensuring that the purchaser is the actual person performing the transaction.

Before concluding the podcast, Yuvarajan also reminded listeners to be mindful of their spending; spend and indulge only after you have completed your financial commitments. Yuvarajan also shares that while the Consumer Credit Bill is a positive step forward, it should be complemented with financial literacy initiatives so that Malaysians, especially the younger generation can be more mindful of how they spend their finances.

Thank you for inviting us and we look forward to sharing more financial advice and promote financial literacy to Malaysians!

Listen to the full podcast here.