SHAH ALAM, Feb 18 — Bank Negara Malaysia (BNM) and employers must impose stricter conditions to ensure only eligible users can access the buy now, pay later (BNPL) scheme, Malay daily Sinar Harian reported an economist has said.

Universiti Kebangsaan Malaysia’s Associate Professor Dr Mustazar Mansur said tighter regulations are necessary to prevent young consumers from falling into high debt and potential bankruptcy.

He suggested that BNM implement credit screening via CCRIS and CTOS while setting clearer conditions on whether BNPL can be used for essential or luxury items. Employers, he said, could also play a role in regulating its use.

“For instance, applicants should pass CTOS and CCRIS screenings. There should also be clear guidelines to prevent excessive debt accumulation, particularly for non-essential items,” he told Sinar Harian.

“Young people rely on such schemes to build their lives, especially after marriage. However, BNPL is more suited for high-value, long-term purchases.”

With BNPL usage on the rise in Malaysia due to its easy access and attractive incentives, Mustazar said employers could also help by verifying and monitoring employees’ financial commitments.

“Indirectly, this would allow employers to be aware of their employees’ debt burden. Excessive debt can impact productivity,” he added.

Meanwhile, Universiti Kuala Lumpur’s Associate Professor Dr Aimi Zulhazmi Abdul Rashid said BNPL is becoming a norm and will continue to grow in the digital economy.

“The same trend is seen in countries with rapid digital adoption, such as China, Taiwan, South Korea, Singapore, and Japan,” he said, adding that financial literacy should be introduced at an early stage in the national education system, from preschool to university.