Kuala Lampur, Aug. 31 -- Malaysia is tightening the rules around consumer credit. Buy now, pay later providers and other non-bank credit businesses are coming under a more formal regulatory framework, while Bank Negara Malaysia is also pushing financial education closer to the point where borrowing decisions are actually made. That second development may prove just as important as regulation itself.

Regulation can set standards, require clearer disclosures and strengthen accountability. But rules alone cannot remove the pressure that often shapes borrowing decisions. A household facing an urgent medical bill, a vehicle repair or a sudden income shortfall may focus on whether it can manage the next instalment, not on the total cost of cre...