The Consumer Credit Act (Rang Undang-Undang Kredit Pengguna, RUUKP) has been introduced as a comprehensive measure to protect Malaysians from financial risks caused by uncontrolled credit usage and unethical lending practices, according to a press release by the Ministry of Finance today.
In light of the rapid rise of digital financial services such as Buy Now Pay Later (BNPL) schemes and instant loans, the government warned of increasing hidden risks such as excessive charges, over-indebtedness and financial scams. The RUUKP aims to establish a regulatory system to better address these challenges, acting as the main legislation overseeing all credit-related businesses and services.
The law will require credit providers to act fairly, mandate transparency in fees and introduce professional standards in debt collection and dispute resolution. It also ensures that individuals facing financial difficulties will have access to legitimate and registered channels for assistance and advice.
For the first time, a Consumer Credit Commission (Suruhanjaya Kredit Pengguna, SKP) will be formed to regulate service providers that have so far operated without direct oversight, including leasing companies, factoring firms, debt collection agencies and non-bank digital financing providers.
Beyond regulatory coordination, the SKP will also consolidate supervisory responsibilities from various ministries and agencies under one roof, creating a more consistent and efficient credit oversight framework.
According to the ministry, the RUUKP is not merely a legislative document but a reflection of the government’s long-term commitment to building a safer, more professional and inclusive consumer credit ecosystem. With a phased implementation strategy, the RUUKP is expected to significantly reshape the national financial landscape and prioritise consumer protection in all credit transactions.
