RM54.9 billion in credit card and BNPL as at end-September. Do not worry, still manageable.

RM54.9 billion in credit card and BNPL as at end-September. Do not worry, still manageable.

What a great article title. BNPL is Friend or Foe?

Take a look at the image first.

Can BNPL be a friend? I guess it could since it will help people to be able to afford something which could be necessary. For example, if they really need to go for a honeymoon trip with their partner and this is once in a lifetime thingy, then perhaps BNPL is a friend. Another example, maybe they really wanted to reward their loved ones for an amazing achievement and that was a promise, then maybe BNPL helps them to fulfill that promise.

However, as soon as this goes out of hand, then it will become a foe. Sinking into a credit card debt or an ever deeper BNPL debt hole is a quicksand. Dropping into accidentally is easy but getting out of one will take a lot of effort. Else, we will have to move to the next step which is restructuring the debt with the bank or maybe we go to the AKPK. As for how much Malaysians are already into credit card and BNPL, read on.

RM54.9 billion in credit card and BNPL as of end-September

We do not need to worry too much about this number according to Deputy Finance Minister Lim Hui Yin. It’s still manageable. Take a look at the image below and then an excerpt of the article in theedgemalaysia.com right after. Tells a lot really.

Article in theedgemalaysia.com Malaysian households owed a combined RM54.9 billion in credit card and buy now, pay later (BNPL) debt as of end-September 2025, according to Deputy Finance Minister Lim Hui Ying.

As of Sept 30, more than 90% of the debt was credit card related. Lim said credit card debt stood at RM50.7 billion, with RM551.8 million (1.1%) overdue. She said online spending continues to drive credit card use.

BNPL loans in Malaysia stood at RM4.2 billion across seven million accounts, with RM147.7 million, or 3.5% overdue from 185,465 users. Lim told Dewan Rakyat during the oral question and answer session. She said the overdue sum is considered manageable. Article in theedgemalaysia.com

On average, I think the Deputy Finance Minister could be right

90 percent of the RM55 billion is for credit card debt and that’s RM49.5 billion. We divide this by around 11 million working population, that’s just RM4,500 per person on average. If everyone uses one full year to slowly pay for this RM4,500 then it’s merely RM375 per month. If this is the typical case, then yes it does seem that the number remains manageable.

I am very sure all our banks are aware of this and will be responsible about it by not giving credit cards to everyone and will be more careful who gets a credit card. They could also manage from the side of credit limit as well. Too high limit will be detrimental to the credit cardholder as spending is easy but paying ia hard.

All the best to everyone and do keep it within limits.

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