KUALA LUMPUR: Malaysians are seeking help with their debt repayment in record numbers, as the country’s household debt hit RM1.63 trillion by the end of 2024, or 84.2% of the nation’s gross domestic product (GDP).
The Credit Counselling and Debt Management Agency (AKPK) reported a more than 50% surge in approved cases under its Debt Management Programme (DMP) last year.
The DMP approved 52,057 household cases in 2023, a sharp rise from 34,670 in 2022, according to AKPK’s newly-released 2023-2024 biennial report titled Rooted in Giving, Growing with Purpose.
That upward trend has continued into this year, with 60,155 individual and 1,697 micro, small and medium enterprise (MSME) cases approved to date.
“These figures speak about more than a rising demand. They reflect a growing trust in AKPK’s structured, fair and compassionate approach to debt resolution,” said chief executive officer Azaddin Ngah Tasir, during the agency’s Hari Raya gathering yesterday.
The positive news is that Malaysians repaid RM1.49bil under the DMP in 2023, an increase from RM1.31bil in the previous year.
That figure rose further to RM1.73bil last year, marking a 15.88% year-on-year growth, the report revealed.
“These repayments are more than just numbers on a balance sheet.
“They are expressions of renewed self-belief, discipline and the collaborative commitment between borrowers, AKPK and financial institutions,” Azaddin said.
Prior to joining the DMP, the report said, many clients had debt service ratios (DSR) exceeding 80% – meaning RM8 out of every RM10 went to paying debts – leaving them with little disposable income.
The DMP’s personalised repayment plans helped many bring their DSR to an average of 40%, allowing for basic needs like housing, healthcare and education.
“Behind every debt is a story. We must not view debt as merely a financial statistic but as a profoundly human experience that affects emotions, relationships, mental health and dignity,” Azaddin added.
Financial distress, he noted, is often a deeply personal and isolating experience.
AKPK’s programmes provide not just a solution, but a path to renewed financial confidence and stability, he said.
“Our role is to help rewrite that story to one of empowerment, restoration and resilience,” he added.
