This initiative is not only aimed at strengthening credit consumers protection, but also at ensuring that credit industry practices are carried out in a fair, responsible and professional manner through an integrated regulatory system.

The initial steps towards the establishment of SKP began in July 2021 with the formation of the Consumer Credit Oversight Board Task Force (CCOB TF). The task force was co-led by the Ministry of Finance (MOF), Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC), with the involvement of various other ministries and agencies, namely the Ministry of Domestic Trade and Cost of Living (KPDN), the Ministry of Housing and Local Government (KPKT), the Ministry of Entrepreneur and Cooperatives Development (KUSKOP), as well as the Malaysia Co-operative Societies Commission (SKM). This reflects the whole-of-Government’s approach and commitment to developing a protection framework centered on the interests of the public.

These efforts culminated in the enactment of the Consumer Credit Act 2025, which aims to consolidate the regulation of the consumer credit industry, previously governed by multiple laws with varying levels of protection. The Act introduces a clearer, more consistent and effective regulatory framework, thereby strengthening governance and professionalism within the industry.

The Consumer Credit Act 2025 was gazetted on 31 December 2025 and came into force on 1 March 2026. It marks the official establishment of SKP as a statutory body and competent authority to regulate the consumer credit industry in Malaysia. With this mandate, SKP plays a key role in strengthening fair, responsible and professional credit practices, while protecting and empowering credit consumers.