Bridging the human capital gap: towards enhancing governance and accountability in the Malaysian Islamic consumer credit sector

Purpose With its focus on Islamic consumer credit business, this study aims to achieve three core objectives, namely, to analyse the human capital needs arising from the Consumer Credit Act 2025 (CCA) using institutional theory (IT) and human capital theory (HCT), to assess the challenges in fulfilling these needs, and to develop recommendations for enhancing governance and accountability. Design/methodology/approach This study adopts doctrinal legal research with qualitative secondary data analysis as the methodology to examine the human capital needs arising from regulatory reforms. Findings This study reveals that the implementation of the CCA imposes new demands on regulatory, advisory and Shariah compliance functions. The demands arise in light of the establishment of the Consumer Credit Commission, the expansion of the Shariah Advisory Council’s responsibility, and the extended supervisory roles of various regulatory and supervisory authorities. It identifies existing gaps in the supply of interdisciplinary talent, particularly in regulatory institutions and non-bank credit providers. The findings underscore an urgent need for competency frameworks, curriculum reform, joint certifications, regulatory technology innovation and industry-academia partnerships. Practical implications This study serves as a useful reference for policymakers, universities, and industry players in shaping a competent regulatory workforce. Ultimately, it contributes towards strengthening regulatory governance and institutional readiness under the CCA regime. Social implications This study enhances consumer protection, strengthens public trust, and supports ethical governance in the Islamic consumer credit sector. Originality/value To the best of the authors’ knowledge, this is the first study to explore the impact of the newly enacted CCA through the prism of human capital and talent development in the Islamic consumer credit sector.