The rising popularity of ‘Buy Now, Pay Later’ (BNPL) schemes among youths could trigger a hidden debt crisis if used irresponsibly, warned Dato Sri Roland Sagah Wee Inn, Minister of Education, Innovation, and Talent Development.
Speaking at the Sarawak Graduate Financial Convention 2025 at Universiti Malaysia Sarawak (Unimas), Sagah stressed that while BNPL offers convenience, it carries risks that many young users underestimate.
“BNPL may seem attractive: get goods now, pay later in zero-interest instalments. But each deferred payment is essentially a micro-debt, and multiple BNPL commitments across providers can quickly accumulate into a significant financial burden if not tracked properly,” he said, in remarks delivered by his deputy, Datuk Francis Harden Hollis.
Sagah cited international studies showing an increase in recurring micro-debt among young consumers using BNPL for non-essential items. He added that responsible use, financial awareness, and disciplined budgeting are essential to avoid a silent debt crisis.
“Financial literacy today must evolve with the digital economy. It’s no longer just about saving—it’s about understanding risks, your rights, and the long-term consequences of financial decisions,” he said.
The convention, themed ‘Money and Risk in the Digital Era’, aligns with the National Strategy for Financial Literacy (NS2) 2026–2030, which emphasises digital financial literacy, scam awareness, and responsible borrowing among youths.
Sagah highlighted key focus areas: collaboration between government, industry, and communities; raising awareness of digital scams and micro-debt; and fostering an ethical financial culture grounded in long-term planning.
He acknowledged Prudential Assurance Malaysia Berhad (PAMB) for supporting financial education initiatives and urged students to use technology as a tool for financial empowerment, not as a trap.
The convention also featured officials including Unimas Deputy Vice Chancellor Prof Ir Dr Siti Noor Linda Taib, PAMB investment market strategist Esther Ong Chen Woon, and Bank Negara Malaysia Kuching Regional Office head Rantai Naga.
Sagah concluded: “Use financial knowledge to control your life and future cash flow, not the other way around. Let this event be a reminder to ask questions, sharpen your skills, and make informed financial decisions.”
