AKPK (Agensi Kaunseling dan Pengurusan Kredit, the Credit Counselling and Debt Management Agency) is a wholly owned subsidiary of Bank Negara Malaysia that began operations on 17 April 2006. All of its services are free. Through the Debt Management Programme (DMP), AKPK negotiates with your banks to consolidate housing loans, hire purchase, credit cards and personal loans into a single affordable monthly payment — unlike bankruptcy, which is a court order.
- AKPK began operations on 17 April 2006 as a wholly owned subsidiary of Bank Negara Malaysia, and all of its services are free.
- The DMP restructures housing loans, hire purchase, credit cards, charge cards and other personal loans into a single payment plan.
- As at December 2024, AKPK had benefited nearly 1.4 million individuals, with around 495,000 borrowers assisted through the DMP.
- The DMP is a voluntary solution, not a court order like bankruptcy.
Who this applies to: Individuals in Malaysia who are struggling to repay household debt with licensed financial institutions and want advice or debt restructuring.
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When the credit card bill, the car instalment and the housing loan all fall due in the same month and the salary is not enough, many Malaysians assume the last resort is bankruptcy. In fact there is an earlier door, and it is completely free.
Agensi Kaunseling dan Pengurusan Kredit — better known as AKPK — was set up specifically to help households drowning in debt, before matters reach the courts.
What is AKPK and who established it?
AKPK began operations on 17 April 2006 as a wholly owned subsidiary of Bank Negara Malaysia (BNM). It was created as part of the effort to build a comprehensive consumer protection framework and to ensure the sustainability and resilience of the household sector.
According to BNM, AKPK provides “advisory, counselling and assistance to individuals on areas relating to credit, financial management and education” — that is, advice, counselling and assistance relating to credit, financial management and education.
Its three service pillars are:
- Financial education — financial literacy on the prudent use of money and credit.
- Financial counselling and advice — personal sessions to assess your financial position.
- Debt management and restructuring — through the Debt Management Programme (DMP).
Importantly: all of these services are provided free of charge. AKPK is neither a debt collection agency nor a lender.
What is the Debt Management Programme (DMP)?
The DMP — known in Malay as the Program Pengurusan Kredit (PPK) — is AKPK’s core offering for individuals who are already struggling to repay their debts.
The basic idea is simple. Instead of you facing five or six different banks on your own, AKPK negotiates on your behalf. Those debts are restructured into a single repayment plan with one monthly payment that is affordable based on your actual income and expenses.
BNM states that AKPK provides assistance to restructure debts relating to “housing loans, hire purchase, credit card, charge card and other personal loans” — that is, housing loans, hire purchase, credit cards, charge cards and other personal loans.
One thing must be clear: the DMP only covers debts with licensed financial institutions. Debts owed to illegal moneylenders (along) are not included.
Who is eligible to join the DMP?
According to AKPK, in general you may apply for the DMP if you:
- Are a Malaysian citizen or permanent resident;
- Have a regular source of income (salaried or self-employed);
- Have debts with licensed financial institutions and still have disposable income remaining after basic expenses;
- Have not been declared bankrupt and have no active legal action by creditors over the debt in question.
The DMP is not only for those already in arrears. You can approach AKPK earlier — as soon as you feel your monthly payment burden is starting to get out of hand. Joining the DMP is also not the same as being declared bankrupt; it is not a court record.
How does the DMP differ from bankruptcy?
This is the most frequently asked question, because many people mistakenly assume the two are the same. In fact the gap is wide.
| Aspect | Debt Management Programme (DMP) | Bankruptcy |
|---|---|---|
| Nature | A voluntary arrangement negotiated with the banks | A court order |
| Cost | Free (through AKPK) | Involves legal costs and fees |
| Debt control | A single restructured monthly payment | Administered by the Malaysian Department of Insolvency |
| Assets | You continue to manage your own assets | Property vests in the Director General of Insolvency to be sold and distributed to creditors |
| Payment | Made according to the agreed plan | Cannot pay creditors directly; everything goes through the Director General of Insolvency |
According to the Malaysian Department of Insolvency (MdI), when a person is declared bankrupt through a court order, their property vests in the Director General of Insolvency for realisation and distribution to creditors under the Insolvency Act 1967. In short, the DMP tries to resolve the problem before it reaches the courts, whereas bankruptcy is a formal legal process with far heavier long-term consequences.
How much has AKPK helped?
Official figures show the scale of the agency’s work. According to a Ministry of Finance press citation, as at December 2024 AKPK had:
- Benefited nearly 1.4 million individuals through free financial advisory services;
- Assisted around 495,000 borrowers through the Debt Management Programme;
- Seen nearly 60,000 borrowers (about 12%) fully settle their loans and complete their participation in the DMP.
AKPK’s mandate has also been expanded. Effective 1 September 2020, BNM transferred the Small Debt Resolution Scheme (SDRS) to AKPK, making it a one-stop platform for individuals and small and medium enterprises (SMEs) in need of debt restructuring services and financial education.
How does the DMP process work?
Although the details may vary by case, the general flow is as follows:
- Contact AKPK — register and book a counselling appointment at an AKPK centre or online. This service is free.
- Counselling session — a counsellor assesses your income, expenses and total debt, and explains the available options (including whether the DMP is suitable for you).
- Restructuring proposal — if the DMP is suitable, AKPK prepares a repayment plan and negotiates with each creditor bank.
- Bank agreement — the banks review and agree to the proposed plan.
- A single monthly payment — once approved, you make one payment according to the agreed plan until the debt is settled.
Throughout this period, payment discipline is key. The DMP only succeeds if the agreed monthly payment is made consistently.
What to bring and prepare
To make the counselling session smoother, prepare a full picture of your financial position: identification documents, income statements or pay slips, and the statements or letters relating to each debt (credit cards, housing loans, hire purchase and personal loans). The more complete the information, the more accurate the plan that can be drawn up.
What’s next
For individuals who find their monthly payments starting to get out of control, AKPK offers a free counselling channel before arrears damage their credit record or lead to legal action. Further information and session bookings are available on AKPK’s official website (akpk.org.my). To understand the full range of options available, the related articles on the role of Bank Negara Malaysia and the personal bankruptcy process may also be consulted.
This article is general information and not personal financial advice. For an assessment specific to your case, consult an AKPK counsellor directly.
Are AKPK's services really free?
Yes. Bank Negara Malaysia states that AKPK's services — including financial counselling and the Debt Management Programme — are provided free of charge. AKPK is not a debt collection company and does not charge any fees.
What types of debt can be included in the DMP?
The DMP covers the restructuring of housing loans, hire purchase, credit cards, charge cards and other personal loans with licensed financial institutions. Debts owed to illegal moneylenders (along) are not covered.
How does the DMP differ from bankruptcy?
The DMP is a voluntary arrangement in which AKPK negotiates with the banks for a single affordable monthly payment. Bankruptcy, on the other hand, is a court order under which a bankrupt's property vests in the Director General of Insolvency, carrying far heavier legal consequences.
Does joining the DMP mean I am declared bankrupt?
No. The DMP is not bankruptcy and is not a court record. It is a repayment plan negotiated voluntarily between you, AKPK and your creditor banks.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Angka prestasi AKPK (hampir 1.4 juta individu; kira-kira 495,000 peminjam PPK; hampir 60,000 selesai pinjaman) adalah setakat Disember 2024 dari petikan akhbar MOF — sahkan terhadap laporan tahunan AKPK/BNM terkini apabila tersedia.
- Kriteria kelayakan penuh PPK (cth. jumlah hutang minimum, tempoh tunggakan minimum, syarat pendapatan boleh guna bersih positif) — sahkan terus dengan AKPK kerana butiran khusus mungkin berubah.
- Langkah proses permohonan PPK — sahkan terhadap laman rasmi AKPK kerana aliran proses boleh dikemas kini dari semasa ke semasa.
Sources
- Agensi Kaunseling Dan Pengurusan Kredit Commences Operations — Bank Negara Malaysia
- Transfer of the Small Debt Resolution Scheme to Agensi Kaunseling dan Pengurusan Kredit (AKPK) — Bank Negara Malaysia
- Financial Education by AKPK — Portal Rasmi Kerajaan Malaysia (MyGov)
- Debt Management Programme — Agensi Kaunseling dan Pengurusan Kredit (AKPK)
- AKPK Benefits 1.4 Million Individuals As At December 2024 — MOF — Kementerian Kewangan Malaysia (MOF)
- Kebankrapan — Jabatan Insolvensi Malaysia (MdI)
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 8 Aug 2026 | Approved and published. | — |