Kuala Lumpur (March 2) - The Consumer Credit Act 2025 has officially come into operation, following its gazettement on Dec 31, 2025. With its enforcement, the government has also set up the Consumer Credit Commission to oversee the industry.
In a statement, the Finance Ministry said the new law is designed to strengthen protections for credit consumers across Malaysia by introducing a more comprehensive, integrated and effective regulatory structure for the consumer credit sector.
The Act establishes a consistent regulatory framework, outlines Authorisation Standards and Standards of Conduct, and creates an integrated system for monitoring, supervision and enforcement. Finance Minister II Datuk Seri Amir Hamzah Azizan (pic) described the move as a significant step towards building a more transparent and accountable credit environment.
He said the enforcement of the Act and the formation of the commission are intended to ensure that consumers are safeguarded against unfair or unethical credit practices.
Under the new law, credit providers such as Buy Now Pay Later (BNPL) operators, leasing companies and factoring firms must obtain a licence from the Consumer Credit Commission. In addition, credit service providers — including debt collection agencies, companies acquiring impaired loans or financing, and debt counselling and management agencies — are required to register with the commission.
These licensing and registration requirements will take effect on June 1, with a six-month transition period granted to allow industry players to submit their applications.
The legislation aims to enhance governance within the credit industry while promoting transparency, fairness, responsibility and professionalism in credit-related activities.
The Consumer Credit Bill 2025 was passed by the Dewan Rakyat on July 21, approved by the Dewan Negara on Sept 4, and received Royal Assent on Dec 22 before being gazetted at the end of the year.
For Sabahans, particularly those who rely on financing options such as BNPL services or personal credit facilities, the new Act provides stronger safeguards against abusive lending and unethical debt collection practices. With clearer rules and stricter oversight, consumers in the state can expect greater protection and improved transparency when accessing credit, while businesses operating in Sabah’s credit sector will be required to meet higher regulatory standards.