We interviewed Desmond Chong, a Financial Education Trainer POWER! at Agensi Kaunseling dan Pengurusan Kredit (AKPK). He studied Master of Marketing at Universiti of Northumbia, Newcastle. Desmond now is working hand in hand with AKPK to promote financial education to Chinese community in Malaysia through ASTRO AEC (channel 301). He can be reached via his fb.

What is AKPK and how AKPK sustain itself since it offers free service? 

Agensi Kaunseling dan Pengurusan Kredit (AKPK), a wholly owned subsidiary of Bank Negara Malaysia (BNM), was set up to proactively ensure the resilience of households by providing an avenue for individual borrowers and potential borrowers to seek advice and assistance in managing their finances and debts. AKPK offers, free of charge, the following services:

  • Financial education – basic money management and tips on using credit responsibly and productively
  • Counselling – advice on managing finances wisely and handle debts responsibly. Includes advice on budgeting, money management and current issues which are credit related.
  • Debt Management Programme – A personalised repayment programme for individuals who are facing difficulties servicing their loans

Since AKPK is a non-profit organisation as well as a wholly owned subsidiary of BNM, we are fully funded by BNM to ensure that we are able to reach out to financially distressed individuals without charging a fee for our services.

Can communication with AKPK be done via online/email for people who can’t travel, sick or to embarrass to show up?

  • We communicate through email for account information, application status and general enquiries.
  • However, for financial counselling and to apply for the Debt Management Programme (DMP), individuals will have to visit any of our branches nationwide for a more comprehensive advice on managing their finances.
  • Another reason that a face-to-face session is necessary is because the preparation of a customised budget for the individual requires our counsellors to take a close look at the individual’s state of financial affairs. This budget is prepared after analysing the individual’s bank statements as well as his/her CCRIS report. These documents are highly private and confidential, and thus, we prefer meeting customers in person.

Debt Management

1)    What will be the signs that indicate a person requires AKPK help?

Some of the signs include:

  • Having little to no savings to handle unexpected expenses
  • Savings depleting at an alarming rate
  • Dependant on part time jobs, overtime, commissions or bonuses to pay for living expenses
  • Living from paycheck to paycheck
  • Paying only the minimum payment for credit cards monthly and outstanding balance of the credit card increases every month
  • Going over the credit limit of the credit card
  • Frequent cash withdrawals from credit card accounts
  • Receiving notices from banks or creditors for non-payment of debts
  • Denied credit because of a negative credit report
  • Borrowing money to pay earlier debts

2)    What needs to be done when a person find himself buried in debt?

The first thing would be to immediately relook at their budget for areas in which they can cut back. In addition to this, they must also have the outstanding balances of all loans and payments listed in their budget.

Should this be insufficient, please visit the nearest AKPK branch for assistance from our qualified financial counsellors.

3)    What is the criteria to qualify for Debt Management Program?

The criteria is that the individual:

  • Has a positive net disposable income after meeting all expenses
  • Does not exceed RM2 million in debts
  • Is not under any advanced litigation process such as bankruptcy notice/creditors petition etc.
  • Is not adjudged bankrupt

It is also important to note that AKPK is only able to restructure loans which are taken in the capacity of an individual, and is not able to restructure business loans.

AKPK’s role

1)    How do people get themselves into debt trap?

  • Since inception up to 31 March 2014, 261,578 individuals have attended our counselling services and from that, 105,560 customers have applied to enrol into our Debt Management Programme.
  • According to our statistics, the main reason our DMP customers default on their loan repayments is the poor financial planning.
  • Please find the breakdown as below:

2)    Having financial problems sometimes can be humiliating, is AKPK discreet with their customers’ privacy?

  • AKPK maintains a high level of privacy and confidentiality as we deal with sensitive information regarding individual’s financial affairs.
  • With the coming into force of the Personal Data Protection Act on 15 November 2013, AKPK is more obliged to keep all information private.

3)    Why do you choose to work with AKPK?

  • In my opinion, AKPK is a noble organisation to work with because we are able to help financially distressed consumers without charging a fee for our services and I’m proud to be a part of this organisation.
  • I, personally, chose to work with AKPK because I am able to impart the knowledge I have on personal financial management to people I meet.
  • In addition to this, I get a sense of accomplishment when I am able to assist consumers handle their debts.

How to help people to get out of debt?

A step-by-step recommended process of debt control, hence debt-free.

  1. Acknowledge the debts you have
  2. Assess your current financial position
  3. Prepare an action plan to reduce debts
  4. Create a financial plan and adhere to it strictly
  5. Review and revise your financial plans periodically to ensure it remains relevant with your current finances.

What are the success rate for AKPK in helping people out of debt trouble?

As at 31 March 2014, 5,165 cases successfully exited from DMP with total outstanding of RM 203.1 million.

Financial Management principle

1)    What is the key to success for getting out of debt?

  • Increasing savings
  • Living within one’s means
  • Reducing debts
  • Sell some of your non-income generating assets/belongings

2)    What will be the fate of a person who does not have a positive income?

  • While this individual may appear to stay afloat for a while, he will most likely end up in a financial predicament due to the lack of positive income.
  • This is why, as a general rule, we recommend keeping the debt to income ratio of not more than 40% of the gross monthly income.

3)    If you are in debt trouble, will you go to AKPK?

  • Most definitely yes. There aren’t many organisations which are able to assist financially distressed consumers the way AKPK can.

Training by Desmond Chong

Desmond is conducting a series of training for the readers of KCLau.com
Premium Webinar Members (PWM) can get full access to the previous training conducted here:
How to Manage Your Debts Effectively
How to Use Your Credit Cards Wisely


Personal finance author and trainer

    21 replies to "Find Out How Can AKPK Help When You Are In Financial Turmoil"

    • Fajim Juffa bin Mohd Mustafa Kamal

      I need help in structuring my debts

    • Tharumathevi

      Hi I’m already in the program. But need some advise on my repayments lately which there was no negotiation was done on the total amnt of outstanding. Need help!

    • Ray

      I have a debt amount which I wish to settle, unfortunately I am away from Malaysia. Can I get to akpk branches nearby to discuss

    • Sing

      I’ve one property combine name with my aunty. If I pass away before I got into bankruptcy will the bank still take action by taking away the house?

    • Jennifer

      If apply AKPK will the BNM blacklist our name and next time need to apply loan also difficult

    • Sandhi

      Hi, I’m Sandhi I need a help I’m in Akpk and still doing payment since 2012 . NOW I need a help how to restructure my payment becoz some of the bank I finished payment and I want my payment to be less .Now I’m paying RM2710 my payment will finish at 2020 I Think tq

      • KCLau

        Can AKPK help you to make the changes?

    • Raj Kumar

      What can I do if my company have not paid my salary for the last 5 months and due to this I am in financial turmoil and unable to pay my credit card and loans. What can I do? Thanks for your help.

      • KCLau

        Find another job fast.

        • KY Lee

          I am having same issue as Mr Raj Kumar.
          No income from my company since last month.
          However, I can’t left my company and find new job as this is my own company.
          Please advice. Thank you.

    • Rajan Muniandy

      All my earning and epf money was used in paying the payments. All monies is now zero. Could not pay nearly 6 mths as one retired in Jan 2018.
      Plz help me as the bsnk’lawyers are after me.

      • Santhi Gopal

        Hi sir, good evening… I’m having some problems with my debts recently. This is because I met with an accident and I’m under MC without salary. I applied for socso and I received some from there and I really cannot corp up with that money to settle my debts…is there any possibility to get advice from your side sir????

    • Christina Sia

      I would like to apply for AKPK Loan, kindly advise what should I do, hope to hear from you asap. Thanks

      • KCLau

        You need to schedule an appointment to meet AKPK consultant. They don’t provide loan, but they help you negotiate with the financial institution set up a repayment program, so you can settle your debt.

        • Nat

          Hi Mr Lau. Is it true that once you have withdraw from AKPK (full settlement/ continue to pay to banks as usual), it will be hard for that individual to apply for other loans as their names are already registered under AKPK? Kindly advice.

    • mohan

      l would like to apply to.communicate with.u I.have a few question do.u have email

    • Henry Ballang

      I would like to apply for AKPK Loan Appreciate procedures.


    • Rajoo Letchumanan

      Hai sir. Im having a bad situation with a lot of debts.i hope some one could help me out from this problem.im stucked in a bank loan and im a goverment staff.hope to get reply from you soon.tqvm sir.
      Rajoo Letchumanan

    • norliza abdul ghani

      how.to.communicate with.u I.have a few question do.u have email

    • Sherene

      I would like to enquiry on akpk loan

    • Stephanie Chong

      How to manage debt effectively

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