KUCHING: The rising popularity of Buy Now, Pay Later (BNPL) schemes among young Malaysians is seen as a benefit as well as a potential concern, according to KC Chang.
The Malaysian Financial Planning Council (MFPC) Sarawak Chapter chairman explained that BNPL services, widely used on ecommerce platforms such as Shopee and Lazada, allow consumers to make purchases through interest-free instalments, making them particularly attractive to younger consumers.
Though these schemes can increase purchasing power and support economic growth, he stressed the need for financial responsibility.
“Consumers should do budgeting on their money — both income and expenses — monthly. It’s the same principle as using a credit card: don’t spend future money, only spend what you can afford to pay,” he said when contacted by New Sarawak Tribune.
To ensure that BNPL services are used responsibly, he suggested the implementation of stricter credit checks.
“Checks on Credit Tip-Off Service (CTOS) reports are necessary to identify individuals with excessive loans or a history of missed payments.
“Those with poor credit should be disqualified from using BNPL. Consumers who default on even one payment should also be disqualified from the scheme,” he advised.
He also highlighted the importance of integrating financial education to curb impulsive spending through BNPL.
“We need to teach budgeting and cash flow management, especially to young consumers, to help them avoid getting trapped in debt,” he stressed.
To help young adults use BNPL responsibly, Chang recommended practical safeguards.
“Manage your cash flow, create a budget for both spending and saving, and stick to it. These measures will help prevent consumers from falling into debt traps,” he added.
