Malaysia launches consultation on proposed new unified regulatory framework of consumer credit activities

28 October 2022

On 4 August 2022, the Consumer Credit Oversight Task Force (“Task Force”) issued the first of a two-part consultation paper to seek public feedback by 5 September 2022 on a proposed regulatory framework dealing with credit providers and credit service providers.

The Task Force, under the purview of the Ministry of Finance, was established to drive the finalisation of the Consumer Credit Bill (“Bill”). Once the Bill is passed and enacted as the Consumer Credit Act (“CCA”), the Task Force will be formally established as the Consumer Credit Oversight Board (“CCOB”). The CCOB is intended to be the regulatory authority for consumer credit business and will complement the role of existing regulators such as Bank Negara Malaysia (which is the Central Bank of Malaysia) and the Ministry of Domestic Trade and Consumer Affairs.

This article by our associate firm in Malaysia, Rahmat Lim & Partners, sets out the key points of the proposed regulatory framework to be introduced by the CCA as set out in the first part of the consultation paper. To read the full article from the Rahmat Lim & Partners website www.rahmatlim.com, please click here.