Limit ‘buy now, pay later’ purchases to high-value necessities, says expert

Free Malaysia Today

Chakrin Utit says BNPL use should be limited to purchases such as smartphones, personal computers, and home electrical appliances.  Read More: https://www.freemalaysiatoday.com/category/nation/2025/02/19/limit-buy-now-pay-later-purchases-to-high-value-necessities-says-expert/  Laporan Lanjut: https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/02/19/had-belian-bnpl-kepada-keperluan-bernilai-tinggi-gesa-pakar/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #Limit #BNPL #Necessities

Transcript

00:00A senior lecturer has suggested that the authorities limit the use of the buy-now-pay-later scheme

00:07to high-value necessities that can be considered investments.

00:13Chakrin Udit of University Putra Malaysia School of Business and Economics said BNPL

00:18use should be limited to purchases such as smartphones, personal computers, and home

00:23electrical appliances.

00:27He said BNPL doesn't require strict credit checks, which means that many low-income

00:31individuals or those with high financial commitments also have access to this facility, thus increasing

00:38the risk of their inability to repay their debt.

00:42Chakrin said to avoid the misuse of BNPL for small purchases, a minimum purchase limit

00:48could be set at RM500 and above.

00:51Last July, the Consumer Credit Oversight Board said that the average BNPL transaction

00:57value of some 3.7 million BNPL account holders was RM84.

01:02Meanwhile, UPM economist Rahim Samad noted that BNM had taken several steps to prohibit

01:09certain individuals from using the facility.

01:13He said such regulatory measures were crucial to ensuring that the BNPL industry would grow

01:18sustainably without affecting household financial stability.

Category

Transcript

Recommended