Zambry Warns Students to Be Cautious of ‘Buy Now, Pay Later’ Schemes

Higher Education Minister Datuk Seri Dr. Zambry Abd Kadir has issued a warning to university students to remain vigilant and avoid falling into the trap of ‘Buy Now, Pay Later’ (BNPL) schemes, which could lead to overwhelming debt.

He revealed that the ministry had received early reports suggesting some students were unknowingly involved in BNPL arrangements that were later converted into high-interest loans, leaving them burdened with large debts.

“I’ve been contacted by many parties who are concerned about this growing issue. While I won’t name any specific parties, the reports indicate that many students are at risk of being trapped in significant debt,” he said.

Zambry spoke to reporters during the opening ceremony of the 58th ASEAN Foreign Ministers’ Meeting (AMM) and related sessions, officiated by Prime Minister Datuk Seri Anwar Ibrahim at the Kuala Lumpur Convention Centre (KLCC) today.

The Ministry of Higher Education (MOHE), he added, is already taking proactive steps by notifying all universities to collect detailed information about whether their students are affected by such schemes.

“At present, a thorough investigation is underway. Most importantly, I want to advise students not to fall into these traps, as it will complicate their lives and distract them from their studies,” he stressed.

Zambry emphasized that financial awareness and caution are vital, especially for students who may not yet fully understand the long-term impact of taking on such obligations.