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Credit Counselling and Debt Management Agency or

Agensi Kaunseling dan Pengurusan Kredit (AKPK)

Nor Fazleen Zakaria 15 October 2014

BNM-AFI Capacity Building Programme

Household

Sector Purpose

Provide avenues to consumers for: 1. Financial Education 2. Credit counselling 3. Debt management

1. Facilitate debt repayment efforts

2. Minimise loan default due to poor management of debt

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Set up in 2006 by Bank Negara Malaysia

Introduction

Banking

System

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Debt Management Programme (DMP)

Credit Counselling

Financial Education

Modules & Publications

Money Sense

POWER!

FE Talks & Exhibitions

Collaborate with smart partners

Focus Group

ToT

Online Portal

1-1 session

Income & Expenses

Total debt exposure

Determine NDI

Provide options

11 branches & 12 counselling offices nationwide

Restructure debts in totality

Secured/Unsecured

Repayment based on cashflow

SERVICES ARE FREE OF CHARGE

Our Services

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• 292,775 counselling cases

• 115,706 individuals applied for DMP (39.5%)

Approx. 1,600 DMPs per month

• Reasons for debt problem:

Poor financial planning (22.8%)

High medical expenses (16.2%)

Failure/slowdown in business (16.1%)

• Gender: Male (2/3) Female (1/3)

• Age: < 30 (17%), 30 – 40 (40%), > 40 (43%)

• Settled DMP: 6,271 cases

Statistics 30 Sept 2014 – Counselling & DMP

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Chapter 1 Why Everyone Needs Financial Planning

Chapter 2 Power From Your Money

Chapter 3 Financial Products and Services

Chapter 4 Building Your Wealth

Chapter 5 Planning for Uncertainties

Chapter 6 Borrowing Basics

Chapter 7 Living Your Life

Chapter 8 Getting Out of Financial Trouble

Personal Financial Management Module

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Chapter 1 Cash Flow Management

Chapter 2 Borrowing Basics

Chapter 3 Wise Usage of Credit Card

Chapter 4 Buying A Car

Chapter 5 Buying a House

Chapter 6 Managing Your Debts

POWER! Module

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Initiated by BNM – worked with FIs & SMEs Reached out to 1,041 SME borrowers: Awareness of AKPK

& our services 1. > 97% relevant to SME borrowers 2. Requested more info on money & debt management

ToTs to microfinance officers of 2 FIs (Maybank & BKRM) Applied AKPK’s training materials to their SME borrowers

Moving forward (2015 onwards):

More structured & evaluate the effectiveness & appropriateness of our programmes

Collaboration: BNM, FIs & SMEs

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Collaborate with AIM & Taylor’s University

Yesterday 14 Oct 2014, AKPK signed a MoU with Amanah Ikhtiar Malaysia (AIM)

AIM is the largest microcredit organisation in Malaysia providing financing to poor household to assist them to undertake viable economic activities to increase income

Taylor’s University volunteered 86 students under their CSR Programme to assist the borrowers of AIM

• Focus groups to AKPK’s FE programmes

• Determine effectiveness of programmes

• Discipline & change of behaviour from participants

• Create awareness to other AIM borrowers & students

Provide financial education to 86 students from Taylor’s University

Provide advisory services to 25 borrowers with the purpose of increasing their

income generating capability by building financial skills & confidence of micro

entrepreneurs

• Assist borrowers of AIM with personal financial management vis-à-vis business operations

• Provide effective handholding

• Model for university’s CSR programme

Collaborate with AIM & Taylor’s University

“Make Prudent

Financial Management

A Way of Life”

www.akpk.org.my

POWER! AKPK Info line:

1 800 88 2575

Thank You