The Consumer Credit Act 2025 or Act 873 (CCA) was gazetted on 31 December 2025 and came into force on 1 March 2026. In line with the enforcement of the CCA, which aims to strengthen credit consumer protection in Malaysia, the Government established the Suruhanjaya Kredit Pengguna (Consumer Credit Commission, SKP).
This Act serves to regulate the conduct of the consumer credit industry in Malaysia in a more comprehensive, integrated and effective manner as follows:
- Provision of a comprehensive and consistent regulatory framework;
- Development of Authorisation Standards and Conduct Standards; and
- Development of an effective integrated framework and information system for monitoring, supervision and enforcement.
YB Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II, said: “This initiative is an important step by the Government to build a transparent and responsible credit system.
“With the enforcement of the Consumer Credit Act 2025 and
the establishment of the Suruhanjaya Kredit Pengguna, the Government is
strengthening protection for consumers so that they are not exposed to unfair
or unethical credit practices,” he added.
Under this Act, credit providers such as Buy Now Pay Later
(BNPL) scheme companies, leasing companies, and factoring companies are
required to obtain a licence from the SKP. Meanwhile, credit service providers
such as debt collection agencies, impaired loan or financing acquisition
companies, and debt counselling and management agencies must also register with
the SKP.
The licensing and registration requirements will take effect
on 1 June 2026, with a transition period of six (6) months provided to the
industry to apply for licences or registration under the CCA.
This measure aims to strengthen consumer protection, enhance
the level of governance in the credit industry, and ensure more transparent,
fair, responsible and professional credit practices.
Ministry of Finance
Putrajaya
2 March 2026
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