Tabled for its first reading in the Malaysian Parliament on 4 March 2025, the long awaited Consumer Credit Act 2025 (“Act”) came into force on 1 March 2026, together with the establishment of the Consumer Credit Commission (“Commission”). With the aim of protecting the interests of credit consumers in Malaysia, the Act seeks to bring order to a historically fragmented sector by:
- regulating all credit businesses and credit service businesses;
- ensuring proper conduct and responsible lending practices by credit industry participants; and
- promoting the development of a fair, efficient, and transparent credit industry.
This alert seeks to draw down on the key takeaways from the Act.
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