MELAKA'S economic growth and rising foreign direct investments (FDIs) require a more structured, clearly regulated credit recovery sector to support the state’s financial ecosystem, says a stakeholder.
Association of Malaysian Credit Recovery Agencies (Amcra) president Rohan Jayaratnam said Melaka’s projected gross domestic product (GDP) growth of 5% for last year made effective credit risk management increasingly important.
"With economic expansion comes higher consumer credit activity, and this increases the need for a properly regulated credit recovery framework to support financial stability," he told The Star on Friday (Jan 30).
Rohan said the credit recovery industry has supported Malaysia’s banking and financial system for decades, particularly in managing and recovering unsecured consumer debt.
"As consumer credit expanded alongside economic growth, licensed credit recovery agencies became an integral part of the financial ecosystem by assisting banks and financial institutions in managing non-performing accounts," he said.
He said the implementation of the Consumer Credit Act 2025 and the establishment of the Consumer Credit Oversight Board (CCOB) provide long-awaited regulatory clarity for the industry.
"We view this new regulatory framework as a positive step because it brings structure, consistency and legitimacy to the credit recovery sector," he said.
Rohan added that Melaka’s ability to attract investments and develop its local vendor and contractor ecosystem makes the state a relevant focus for industry engagement.
"Although Amcra was only officially launched recently, Melaka is among the states we intend to engage, particularly in supporting businesses and stakeholders operating within a regulated credit environment," he said.
He added that Amcra was formed to represent licensed credit recovery agencies nationwide and to serve as a structured platform for engagement with regulators and industry stakeholders.
"The credit recovery industry employs thousands of Malaysians and recovers billions of ringgit in unsecured debt annually on behalf of banks and financial institutions," he said.
Meanwhile, Amcra deputy president Datuk Mohd Shahrom Mohd Rafik said debt recovery activities must be carried out ethically and in accordance with the law.
"Debt recovery is about restoring balance and responsibility within the financial system.
"It must be conducted lawfully, respectfully and with dignity," he said.
Shahrom said Amcra currently represents more than 40 licensed credit recovery agencies nationwide and aims to contribute to the development of industry standards and best practices.
On Jan 19, Melaka Chief Minister Datuk Seri Ab Rauf Yusoh said that the state government is projecting GDP growth of 5% for last year after recording RM48.9bil in 2024.
He said the projection was in line with national economic performance, with Malaysia’s GDP expanding by 4.4% in 2024.
