The Consumer Credit Act 2025 introduces a new licensing, registration and conduct standards framework for non-bank consumer credit and credit service providers in Malaysia.
Our latest Legal Alert highlights the key requirements, transition timelines and practical steps businesses should take to prepare for compliance.
The Consumer Credit Act 2025 (Act 873) (“CCA”) introduces a mandatory licensing and conduct standards regime for consumer credit providers and service providers, overseen by the new Consumer Credit Commission (“CCC”).
Credit providers such as Buy Now, Pay Later (“BNPL”) operators, leasing and factoring companies must now be licensed by the CCC, while entities carrying on credit service businesses, including debt collection agencies, impaired loan buyers and debt counselling or management agencies, are required to register with the CCC.
The CCC’s guidance on authorisation further clarifies that only companies incorporated in Malaysia under the Companies Act 2016 may apply and that applicants must demonstrate financial adequacy, organisational capability and the fitness and propriety of key persons.
With the Act in force from 1 March 2026, all in-scope non-bank market participants are brought within a formal authorisation and supervisory perimeter.
Licensing and registration obligations take effect from 1 June 2026, with a six-month transition period for existing market participants to regularise their status, via applications submitted through the CORE online system together with prescribed supporting materials and a processing fee of RM2,000 per business type.
In furtherance, the CCA empowers the Minister and the CCC to issue regulations, authorisation criteria and binding conduct standards to ensure fair, responsible and professional treatment of credit consumers, supported by extensive supervisory, investigative and enforcement powers, including examinations, document seizures and administrative, civil or criminal actions.
Market participants should now map their activities against the CCA perimeters, identify licensing or registration needs, enhance internal policies and consumer-facing documents, and plan early engagement with the CCC ahead of the transition deadlines.
