SPECIAL ACT ON BNPL CAN PROTECT CONSUMERS ESPECIALLY YOUTHS FROM DEBT BURDEN

KUALA LUMPUR, March 28 (Bernama) -- The enactment of a special act relating to the 'Buy Now Pay Later' (BNPL) scheme is important to protect consumers, especially the younger generation, from high debt burdens.

Global Law Thinker Society (GLTS) Malaysia chairman Muhammad Nazrin Faiz said the move is important to ensure a balance between consumer needs and the interests of traders.

“If we look at it today, the law is still in the process of being adapted to the BNPL because it has not yet been determined where the legal framework should be placed.

“There needs to be a clear platform so that consumers know their purchase limits. At the same time, sellers also know the costs or interest rates that should be charged,” he said during the BernamaTV programme Darah Muda on Friday.

He said the enactment could also benefit both parties where traders can continue to generate profits, while consumers can spend without facing financial risks.

Muhammad Nazrin also suggested that stakeholders such as non-governmental organisations (NGOs) intensify financial literacy campaigns or programmes for consumers.

“When we table (the results of the programme) and then take it to the (drafting) of the law, we are ultimately not only looking after traders but also want to protect consumers.

“This will bring a positive impact to the country's economy as a whole. Too much debt will have an impact on the country,” he said.

-- BERNAMA