[Simplified]: What is AKPK? Advantages & Disadvantages

AKPK is a gov agency that can save some Malaysians who can’t repay their debts on time from eventually going bankrupt.

Just take a look at the spike of interest for the search phrase: ‘AKPK’ in the past 12 months:

Google trend: AKPK

I didn’t know how AKPK works, so I read up on their website, called and spoke to an AKPK officer, and interviewed a personal friend who is enrolled in AKPK’s Debt Management Program to find out.

AKPK now also helps SMEs in financial distress, but in this article, I will focus on the individual level:

What is the AKPK?

AKPK

AKPK is a government agency under BNM that helps qualified Malaysians to regain control of their spiraling debt crisis for FREE.

AKPK stands for Agensi Kaunseling & Pengurusan Kredit. In English, it means the Credit Counselling and Debt Management Agency.

AKPK does not provide any loans, and depending on the severity of your debt crisis, people on the worse end of the spectrum may be recommended to join their Debt Management Programme:

What is AKPK’s Debt Management Programme?

AKPK’s Debt Management Programme

If you enter the Debt Management Programme, typically, AKPK will negotiate with all of your creditors to extend your loan tenure, thus, decreasing your monthly installments, making it easier to repay back the loans.

If your creditors agree to this new payment plan, you will pay a lower consolidated repayment amount monthly to AKPK, and they will transfer the money to your creditors automatically on your behalf.

If you understand, agree, and enroll in the Debt Management Programme, your credit cards will be deactivated. You will most likely not be able to apply for a new credit card or loan as long as you are enrolled in this program.

You can consider the Debt Management Programme to be one of the last things you want to do to save your finances before going bankrupt.

Who is the Debt Management Programme For?

Debt-O-Meter: At which stage AKPK can help you

AKPK helps Malaysians who start missing repayments & intervene to restructure their loans. If all goes according to plan, the Debt Management Program prevents the borrower from going bankrupt.

In 2020, AKPK helped 32,349 Malaysians restructure their debts totaling RM 1.5 billion.

Common symptoms for people who this program is designed for (verified by my friend):

  • People who have exhausted their savings
  • People who have maxed out their credit card & personal loans to cover their debts
  • Missed repayment for a few months
  • Feeling suffocated by constant calls from the banks

AKPK Requirements

These are the requirements stated on AKPK’s website:

  • You’re Malaysian & not yet bankrupt
  • Your debt outstanding is not more than RM 5 million
  • You have a provable source of income (a payslip is perfect)
  • Your monthly cashflow is postitive – This makes no sense. If you’re positive cashflow, you might not be in this problem to begin with. So if you are negative cashflow, give them a call anyway

For the full list of requirements, visit AKPK’s Debt Management Programme page.

The Process of Joining the Debt Management Programme

  • Contact your nearest AKPK branch (they have 1 for each state), info at the end of this article
  • Have a phone consultation of your situation & to see if the programme makes sense for you
  • Head on over to the office for a 1 to 1 session & paperwork (might be over the phone during COVID times)

Pros & Cons of AKPK

The AKPK’s Debt Management Programme is not for everyone as it does have serious effects on your finances. It is important that you talk to your AKPK counselor, weigh in your options and really think it through if this is the best option for you, moving forward.

Benefits of AKPK (Debt Management Programme)

Lower monthly installment
  • Stretches your loan tenure longer, so your monthly instalment is lower (interest rates will depend on negotiations with your bank)
  • Instead of manually paying to all of your loans individually, AKPK consolidates them all, so you’ll only pay to AKPK each month, then they’ll handle the rest
  • Takes away your credit cards, good if you cannot control your spending
  • Privacy: Your employer will not be informed that you have joined the Debt Mangement Programme
  • Unlike a bankrupt person, anyone enrolled in the programme can still travel overseas
  • The programme can also help to resturcture PTPN student loans

Disadvantages of AKPK (Debt Management Programme)

Longer tenure = lower monthly repayments
  • They don’t cover all loans. But loans from big banks should be ok. Ask AKPK for your situation
  • You will no longer have a credit card, which is an important tool in today’s society
  • Joining AKPK’s Debt Management Programme will be mentioned on your CCRIS report. Banks will be reluctant to give you any new loans as long as you are in the programme. You might have difficulties getting a loan right after you exit the programme too.
  • You must be able to meet the new repayment to AKPK & they’ll only help you once in your lifetime.

For the full list of Pros & Cons + FAQs, please visit this page.

Contact AKPK Hotline for Help

This is the extent of my knowledge and research on AKPK and their Debt Management Programme. So far, I find the officer very professional, approachable & non-judgemental.

For more info if you need help, please visit the official AKPK website:

The AKPK hotline is:

+603 2616 7766

Alternatively, you can visit your nearest AKPK branch. The Google maps links on their website are not working for some reason, but I’ve compiled all the links that works based on the address listed on their website:

AKPK BranchPhoneOffice Location
Kuala Lumpur+60326167766Menara Bumiputra-Commerce
Shah AlamBank Muamalat, PKNS Complex
KlangBank Muamalat, Jalan Kelicap 42A/Ku1
SerembanJalan Dato Bandar Tunggal
Melaka+6062921238Bangunan Munshi Abdullah
Johor BahruBangunan Bank Negara Malaysia
KuantanMahkota Square
IponGreentown Square
Kota BharuKota Indah
Pulau PinangLebuh Light
Alor SetarKompleks Sultan Abdul Hamid
AKPK branch location in Malaysia

Hope this helps! Let me know in the comments if you found this useful, or if you have a personal story to share 🙂

Helmi Hasan

Hi, I'm Helmi Hasan, the founder, and writer for the personal finance blog, Balkoni Hijau. Read more in the 'About Me' page or follow me on Twitter.

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