KUALA LUMPUR, April 23 — The National Credit Counseling and Management Agency (AKPK) reportedly said it found 53,000 youths aged 30 and below are under debt worth nearly RM1.9 billion in total.

Malay daily Utusan Malaysia reported that the main factor for the affected youths to approach and register with AKPK for debt restructuring assistance was to restore their cash flow.

“Based on AKPK records, they are mainly caught in such a situation due to having additional children in their family, maintaining a particular lifestyle, housing loans and purchase of vehicles,” Utusan Malaysia wrote in its report.

“AKPK’s credit management programme is catered to assist those with loan issues involving housing loans, rent-to-own, credit cards, charge cards and personal loans obtained from banking institutions or credit providers that are regulated by Bank Negara Malaysia (BNM).


“Those referred to the programme have various financial issues and they are also barred from taking up new loans,” the report added.

According to AKPK, those aged between 28 and 30 made up the highest proportion of applications at 65 per cent of the total number of the agency’s clients as of March.

The report added that credit card debts were AKPK’s most restructured credit facilities, involving 47 per cent of those registered under the agency.


This is followed by personal loans (40 per cent), vehicle hire purchase loans (three per cent), mortgages (two per cent) and others (eight per cent).

AKPK said managing one’s finances is important in tackling the issue of serious debts.

“If borrowers can manage their finances holistically according to their financial situation, it can have a meaningful impact in assisting them to achieve their set goals.

“It should be reminded that the credit rating of the borrower will be affected if they fail to service their loan instalments within the specified time period,” the agency reportedly said.

AKPK’s credit management programme aids in restructuring the loans of those who face serious debts, aiming for them to reach a reasonable repayment period based on current financial standing and a reprieve from legal action and harassment from debt collectors.