PROSPECTS AND OPPORTUNITIES
Changes in governmental policy will drive growth in consumer credit
The rising cost of living in Malaysia is expected to significantly impact consumer credit in the short-term, following the announcement of several key changes as part of Budget 2025. These include the ending of petrol subsidies for higher-income groups and the introduction of mandatory e-invoicing, for example.
Rising cost of living will boost demand for personal loans
The soaring cost of living in Malaysia, driven by higher inflation and shifting governmental policies, is expected to make personal loans an increasingly popular consumer credit option in 2025 and beyond. The impact of these economic pressures has led to a significant uptick in borrowing, with government agencies like the National Cooperative Movement (Angkasa) reporting that over 800,000 civil servants have taken out personal loans by 2024.
BNPL will continue to gain traction
Buy Now Pay Later (BNPL) services are expected to maintain strong growth in Malaysia over the forecast period, fuelled by the increasing cost of living. Consumers are increasingly turning to BNPL to spread the cost of their purchases into manageable instalments, making goods and services more affordable in an environment of rising prices.
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Overview:
Understand the latest market trends and future growth opportunities for the Consumer Credit industry in Malaysia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Consumer Credit industry in Malaysia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Consumer Credit in Malaysia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Consumer Credit in Malaysia?
- What are the major trends key to understanding Consumer Credit in Malaysia?
- How has COVID-19, recession and macroeconomic volatility impacted the market?
- How long will the market take to recover? What are the opportunities now?
- How will political context and shifting cultural values shape future growth?
- Where is future growth expected to be most dynamic?
Consumer Credit in Malaysia - Category analysis
KEY DATA FINDINGS
Government’s e-invoicing initiative impacts growth in auto lending
Consumers show greater familiarity with Buy Now Pay Later (BNPL) services
Rising credit card debt, driven by younger Malaysians
Changes in governmental policy will drive growth in consumer credit
Rising cost of living will boost demand for personal loans
BNPL will continue to gain traction
Consumer Lending in Malaysia - Industry Overview
Consumer lending in 2024: The big picture
2024 key trends
Education lending remains strong, with high number of defaulters
Governmental initiatives enable easier home ownership
BNPL schemes gain traction
What next for consumer lending?
DISCLAIMER
The following categories and subcategories are included:
Consumer Credit
- Auto Lending
- Card Lending
- Durables Lending
- Education Lending
- Home Lending
- Other Personal Lending
Consumer Credit
Non-mortgage consumer debt extended to individuals for personal or household use including installment loans and credit cards. Examples of consumer credit include auto lending, card lending, durables lending, education lending, home lending and other personal loans. Consumer credit includes both revolving and non-revolving credit.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Consumer Credit research and analysis database.
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