KUALA LUMPUR: Debt among the younger generation is seen as a ticking time bomb for the country's economy.
Bachok member of parliament Mohd Syahir Che Sulaiman said that based on data from the Credit Counselling and Debt Management Agency, 53,000 individuals under the age of 30 are facing a staggering total debt of RM1.9 billion.
He said the increasing accessibility of personal loans, credit cards, and particularly Buy Now Pay Later (BNPL) schemes is raising alarms, especially among the younger generation.
"According to the latest report from the Consumer Credit Oversight Board, the value of BNPL debt has now reached RM1.42 billion, with the majority of the 3.7 million BNPL account holders aged between 21 and 45.
"Consumers in Malaysia, particularly young people, are at risk of falling into higher household debt due to the growing tendency to utilise BNPL schemes.
"Unlike credit cards and personal loans, BNPL often does not require thorough credit checks.
"The appeal of the BNPL model lies in its flexibility and accessibility, attracting a wide range of users, especially those in the millennial and Gen Z demographics, who are heavily engaged in online shopping," he said during the debate on the 2025 Budget in the Dewan Rakyat today.
In this context, Syahir welcomed the initiatives taken by Bank Negara Malaysia and the government to formulate a more comprehensive regulatory framework to oversee these increasingly creative online financial service entities, alongside providing more responsible consumer credit regulations.
"This matter needs to be prioritised," he said.