Article from Ipoh Echo dated 16 June 2013

Despite being in existence since 2006, many people are still unaware of Agensi Kaunseling dan Pengurusan Kredit (Credit Counselling and Debt Management Agency) or simply, AKPK. This Bank Negara agency started out as an avenue to help people who are heavily in debt to get back on their feet by assisting in restructuring their borrowings.

The agency hopes to empower consumers with financial knowledge and to make prudent financial management a way of life for everyone.

During a briefing session in Ipoh recently, AKPK Chief Executive Officer, Koid Swee Lian shared with representatives from Ipoh-based financial institutions and members of the press, AKPK’s objectives and how their counsellors can help people who are in debt take charge of their finances once again.

Currently, there are three trained counsellors in Ipoh who can cater to the different communities. Providing one-to-one counselling, some of the initial questions they need answered would be the income of the debtor, expenses, financial assets and debt(s).

Based on this background information, the counsellor will identify expenses and ways to save money. He will then tailor a debt management programme, negotiating with multiple lenders if necessary. Once this schedule is accepted by the lenders, the one monthly repayment amount should not be difficult to meet, as it is always within the repayment capacity of the debtor.

Easy as this may sound, there are certain criteria that a person has to meet prior to enrolment into the debt management programme. Open only to individuals, they must have a positive net disposable income, have a cumulative debt not exceeding RM2 million and only from credit providers approved by Bank Negara Malaysia, not under advanced litigation or bankrupt.

The main challenge would be for the individual to be proactive in turning around his or her lifestyle and scale it down as much as possible.

To date, more than 200,000 people have come forward to AKPK for financial counselling and out of this almost 90,000 have enrolled in its debt management programme. So far, 3412 people have exited the programme, successfully clearing their debt with total outstanding of RM130.86 million.

There are many factors that contribute to mounting debts. They include poor financial planning, high medical expenses, loss of job and slowdown or failure in business. Many also get caught in credit card debt, personal loans, hire purchases and housing loans without fully understanding the impact of the high interest rate charged.

Those who would like to empower themselves with personal financial knowledge can do so by logging on to AKPK’s online learning portal:

http://power.akpk.org.my/.

On the other hand, anyone who is faced with a personal financial crisis and finds himself at his wits’ end should seek advice from AKPK. Services offered by the agency are free of charge.

Agensi Kaunseling Dan Pengurusan Kredit

(Credit Counselling And Debt Management Agency)

Address: Unit B-2-1, Greentown Square,

Jalan Dato’ Seri Ahmad Said, 30450 Ipoh, Perak.

Office hours: 8.30am – 5.30pm (Monday to Friday)

Toll free: 1-800-88-2575 Website: http://www.akpk.org.my

Article from BERNAMA Online dated 10 June 2013

GEORGE TOWN, June 10 (Bernama) -- The percentage of young Malaysians facing debt defaults has been reduced to 10 per cent as at April this year from 15.8 per cent in 2009, according to the Credit Counselling and Debt Management Agency (AKPK).

It said the younger generation under its Debt Management Programme (DMP) was more savvy in financial management and most of them preferred to use debit card instead of credit card.

"AKPK is concerned about those in the 20-30 age group as they are always in debt. The reduction now shows a healthy indication," AKPK's chief executive officer, Koid Swee Lian, told reporters after briefing financial institutions here Monday.

She said AKPK hoped that its credit and financial management education would reach out to one million people this year from 650,000 people in 2009 via active road shows and smart collaborations.

Koid said the reason for the highest default in servicing debt under its DMP was poor financial planning (23 per cent as at April this year) and high medical cost (20 per cent).

She said as at April this year, 3,412 cases were successfully exited from AKPK's DMP with a total outstanding debt of RM130.86 million.

Koid said AKPK, with its smart partners -- Minggu Saham Amanah Malaysia, Bank Negara Malaysia's Mobile LINK, Higher Education Corp's Loan Fund and higher learning institutions -- helped educate the public on financial and debt management.

"Some 75 institutions of higher learning are offering elective personal financial management courses to empower young graduates to be financial-savvy," she said.

It featured, among others, 40 learning hours, 14 teaching hours, study visits, examinations and seminars, she said.

"The module also features four hours of learning the agency's money and debt management programme called Power!," she said.

Article from New Straits Times dated 10 June 2013

GEORGE TOWN: The percentage of young Malaysians facing debt defaults has been reduced to 10 per cent as at April this year from 15.8 per cent in 2009, according to the Credit Counselling and Debt Management Agency

(AKPK).

It said the younger generation under its Debt Management Programme (DMP) was more savvy in financial management and most of them preferred to use debit card instead of credit card.

"AKPK is concerned about those in the 20-30 age group as they are always in debt. The reduction now shows a healthy indication," AKPK's chief executive officer, Koid Swee Lian, told reporters after briefing financial institutions here today.

She said AKPK hoped that its credit and financial management education would reach out to one million people this year from 650,000 people in 2009 via active road shows and smart collaborations.

Koid said the reason for the highest default in servicing debt under its DMP was poor financial planning (23 per cent as at April this year) and high medical cost (20 per cent).

She said as at April this year, 3,412 cases were successfully exited from AKPK's DMP with a total outstanding debt of RM130.86 million.

Koid said AKPK, with its smart partners -- Minggu Saham Amanah Malaysia, Bank Negara Malaysia's Mobile LINK, Higher Education Corp's Loan Fund and higher learning institutions -- helped educate the public on financial and debt

management.

"Some 75 institutions of higher learning are offering elective personal financial management courses to empower young graduates to be financial-savvy," she said.

It featured, among others, 40 learning hours, 14 teaching hours, study visits, examinations and seminars, she said.

"The module also features four hours of learning the agency's money and debt management programme called Power!," she said.

Petikan article dari Harian Metro, 11 Jun 2013

GEORGETOWN: Peratusan golongan muda Malaysia yang gagal membayar hutang menurun kepada 10 peratus sehingga April tahun ini berbanding 15.8 peratus pada 2009, demikian menurut Agensi Kaunseling dan Pengurusan Kredit (AKPK).

Ia berkata generasi muda yang terlibat dalam program pengurusan hutang (DMP), lebih mahir dalam pengurusan kewangan dan kebanyakan mereka memilih menggunakan kad debit berbanding kad kredit.

"AKPK bimbang mengenai kumpulan umur 20 hingga 30 tahun memandangkan mereka sentiasa berhutang.

Pengurangan ini menunjukkan petunjuk yang sihat," kata Ketua Pegawai Eksekutif AKPK Koid Swee Lian, kepada pemberita selepas taklimat institusi kewangan di sini hari ini.

Beliau berkata AKPK berharap pendidikan kredit dan kewangannya akan sampai kepada satu juta orang tahun ini berbanding 650,000 orang pada 2009 menerusi pameran bergerak serta usaha sama pintar.

Koid berkata menerusi DMP, punca kegagalan tertinggi dalam membayar hutang disebabkan oleh perancangan kewangan yang lemah (23 peratus sehingga April tahun ini) dan kos perubatan yang tinggi (20 peratus).

Katanya sehingga April lepas, 3,412 kes berjaya dikeluarkan daripada DMP AKPK dengan jumlah baki hutang sebanyak RM130.86 juta.

Koid berkata AKPK, bersama rakan pintarnya -- Minggu Saham Amanah Malaysia, unit bergerak LINK Bank Negara Malaysia, Perbadanan Tabung Pendidikan Tinggi Nasional dan institusi pengajian tinggi -- membantu

mendidik orang ramai mengenai pengurusan hutang dan kewangan.

"Kira-kira 75 institusi pengajian tinggi juga menawarkan kursus pengurusan kewangan peribadi yang berkesan bagi mengupayakan graduan muda supaya celik kewangan," katanya.

Ia antara lain membabitkan 40 jam pembelajaran, 14 jam pengajaran, lawatan belajar, peperiksaan dan seminar, katanya.

"Modul juga membabitkan program pengurusan aliran wang peribadi dengan yakin dan dapat membuat keputusan pengurusan kewangan dengan berhemat, empat jam yang dikenali sebagai Power!," katanya.

Article from the New Straits Times dated 4 July 2013

KUALA LUMPUR: Su Cheng, who earns about RM2,000 a month, had four credit cards to support her lavish lifestyle.

Without realising it, she began to fall into the credit card debt trap as she withdrew cash advances from one card to cover the minimum payment of

another card.

Her financial situation worsened when she hit the maximum credit limit, and most of her income went to making the repayments.

Another couple, who wanted to be known only as Salim and Adriana, thought they could afford to have a lavish lifestyle as their combined income was more than RM10,000 a month. However, things got tougher when Adriana had to quit her job to take care of their children.

Nearly 80 per cent of their income had to go to paying off their credit card debt.

Alex, a young marketing executive who bought a house and signed on as the co-borrower for the housing loan, suddenly faced a major hurdle when his father, who was the primary financial provider, was diagnosed with a critical illness.

This caused an additional financial burden on Alex. He decided to make up for his financial short-fall by getting credit cards and personal loans. Soon, he defaulted on his monthly housing payments and faced legal action.

These young people were among the 222,942 individuals who sought help from the Credit Counselling and Debt Management Agency (AKPK) service until the end of May.

They sought financial advice on how to get their personal financial situation back on track.

AKPK's records show that 23 per cent seeking counselling cited poor financial planning as the main reason for them ending up in debt and defaulting on their loans.

AKPK head of corporate communications Mohamad Khalil Jamaldin said the agency provided counselling on financial management, including tips on using financial budgeting to manage expenses. AKPK assisted financially distressed consumers regain financial control.

Khalil advised the public to use AKPK's web application or banking calculators to make their monthly budgeting easier.

Debtors can also join AKPK's Debt Management Programme, which guides them in settling their debts in line with their income. Until the end of May, 90,807 applicants had joined the programme.

Insolvency Department head of corporate communications Shamsiah Chee Ros said people were declared bankrupt mainly because they maintained a lavish lifestyle and had poor financial planning. Another factor was the improper use of credit cards. "To maintain their lavish lifestyle, they often fail to differentiate between their wants and needs," Shamsiah said.

She said that failure to make repayments on credit card purchases accounted for 4.18 per cent of of bankruptcy cases, while debts due to hire purchase loans accounted for 25.79 per cent.

According to Bank Negara statistics, up till March, the highest amount of loans given was for residential properties (RM312.8 billion) and the second highest (RM144.1 billion) was for the purchase of cars.

Article from the New Straits Times dated 10 July 2013

SETTING AN EXAMPLE: Children should be thought the value of money

BUKIT MERTAJAM: WITH Hari Raya Aidilfitri just around the corner, and household debt at an all-time high, prudence should be the order of the day.

Parents were yesterday advised to minimise the amount of duit raya given to their children and to save the rest or invest it in a long-term investment plan.

Credit Counselling and Debt Management Agency (AKPK) corporate

communications head Mohamad Khalil Jamaldin said giving duit raya in the form of investment would be a good way of teaching children the value of money.

"Parents can also give their children precious metals (gold or silver) of small denominations to kick start their wealth building."

He said some parents who preferred to invest in Amanah Saham Bumiputera (ASB) and Permodalan Nasional Bhd (PNB) for their children instead of giving money during Hari Raya.

"For many children, Hari Raya will not be the same without getting duit raya, so parents should set aside a small amount of cash to be given to them in the spirit of the festivities," he said, adding that parents should take a more proactive approach with their children's spending habits.

Khalil said the degree of intervention in a child's finances would depend on his or her spending habits.

"If the parents noticed their child is saving money and prudent with his expenses, then monitoring and evaluating his spending habits would be sufficient.

"However, if the child is spendthrift, then the parents will have to instil better money managing habits."

Khalil said parents should encourage their children to save money from young as it would assist them to make better financial decisions.

"Parents can instil the habit of saving in their children by providing financial education to them and exposure on banking terminologies and practices.

"Think of duit raya as a bonus for kids, the way working adults receive their annual performance bonuses.

"We normally use a small portion of the bonus and save the rest, so we should encourage our children to do the same."