AKPK Debt Management Programme (DMP): How It Works and Who It's For

If you are behind on credit card payments, juggling multiple personal loans, or dreading the next call from a debt collector, you are not alone. And there is a way through it that does not involve bankruptcy.

AKPK — Agensi Kaunseling dan Pengurusan Kredit — is Malaysia's government-backed credit counselling agency. Their Debt Management Programme (DMP) restructures your unsecured debts into a single monthly payment you can actually afford. The service is completely free. No hidden fees. No catch.

Since AKPK was established in 2006, over 1.4 million Malaysians have used their services. As of the latest data, approximately 253,000 people are currently enrolled in the DMP. That number alone should tell you something: this is not a fringe programme for extreme cases. It is a mainstream financial tool used by working Malaysians across every income level.

What Is AKPK?

AKPK's full name is the Credit Counselling and Debt Management Agency (Agensi Kaunseling dan Pengurusan Kredit). It was established by Bank Negara Malaysia (BNM) in April 2006 under the Financial Sector Talent Enrichment Programme, and it operates as a wholly-owned subsidiary of the central bank.

This matters because AKPK is not a lender. It is not a debt collector. It does not profit from your debt. It is a neutral intermediary whose sole purpose is to help Malaysians manage their credit obligations responsibly.

AKPK provides three core services, all free of charge:

1. Financial education — workshops and online resources on money management, budgeting, and responsible borrowing
2. Credit counselling — one-on-one sessions where a certified counsellor reviews your financial situation and advises on options
3. The Debt Management Programme (DMP) — a structured repayment plan that consolidates your debts and negotiates reduced terms with creditors

AKPK is headquartered in Kuala Lumpur with branch offices in every state capital. They also run mobile offices and outreach programmes in smaller towns. Since the COVID-19 pandemic, virtual counselling sessions via phone and video call have become a permanent option.

What the DMP Actually Does

The DMP takes your unsecured debts — credit cards, personal loans, hire purchase arrears — and restructures them into one consolidated monthly payment that fits your actual income and living expenses.

Here is what AKPK negotiates with your creditors on your behalf:

• Reduced interest rates — often to 0% on credit cards and significantly lower rates on personal loans
• Frozen interest — some creditors agree to freeze interest entirely, so your payments go entirely toward principal
• Extended repayment periods — stretching the timeline so monthly amounts become manageable
• Waived late payment fees and penalties — clearing the accumulated charges that make debt feel impossible to escape
• One payment, one recipient — instead of paying six different banks on six different dates, you pay AKPK once a month, and they distribute the correct amounts to each creditor

The typical DMP repayment period runs 5 to 10 years, depending on your total debt and what you can afford monthly. Some cases complete in under 5 years. The plan is built around your real budget — what you earn minus what you genuinely need for housing, food, transport, and dependents.

You keep paying. You pay back what you owe. But the terms become survivable.

Who Qualifies for the DMP

The DMP is not means-tested in the way you might expect. There is no income cap. Both high earners and minimum-wage workers can qualify, provided the core criteria are met:

• Malaysian citizen or permanent resident — the programme is not available to foreign workers on work permits
• Genuine difficulty repaying debts — this is assessed during your counselling session. AKPK distinguishes between people who genuinely cannot keep up and those who simply want a better deal. The DMP is for the former.
• Unsecured debts — credit card balances, personal loans, overdrafts, and outstanding hire purchase amounts are the primary debts covered
• Willingness to follow the programme — the DMP requires discipline. You must commit to the repayment plan and accept the restrictions that come with it

What About Secured Debts?

Your home loan and car loan are not restructured under the DMP because they are secured against assets. However, AKPK counsellors can help you negotiate separately with your mortgage lender or hire purchase company. Many banks have their own internal hardship programmes for secured facilities, and AKPK counsellors know how to navigate these.

Who the DMP Serves

The DMP is not limited to any one demographic. AKPK's caseload includes:

• Salaried employees who overextended on credit cards
• Self-employed individuals whose income dropped
• Retirees whose EPF withdrawals did not cover their debts
• Young professionals who accumulated debt through BNPL, credit cards, and personal loans early in their careers
• Families hit by job loss, medical emergencies, or divorce

If you can demonstrate that your current debt obligations exceed your ability to pay — and you are willing to commit to a structured plan — AKPK will work with you.

How to Apply for the DMP

The process is straightforward. There is no complex paperwork, no application fee, and no credit check by AKPK (they are not a lender).

Step 1: Contact AKPK

• Phone: 03-2616 7766
• Website: akpk.org.my
• Walk-in: Any AKPK branch office (locations listed on their website)

You can also reach AKPK through BNM's LINK & BNMTELELINK services.

Step 2: Book a Counselling Session

Sessions are free and available in-person or virtually. Expect the initial session to take 1-2 hours. The counsellor needs to understand your full financial picture.

Step 3: Bring Your Documents

Come prepared with:

• MyKad (IC) — original for verification
• Salary slips — last 3 months (or income proof if self-employed: bank statements, invoices, tax returns)
• Bank statements — last 3 months for all accounts
• Complete list of debts — every credit card, personal loan, and financing facility, with the latest statement for each
• Monthly expense breakdown — rent/mortgage, utilities, groceries, transport, school fees, insurance

The more complete your documentation, the faster the process moves.

Step 4: Financial Assessment

Your counsellor will map out your total income against your total obligations and essential expenses. This is not a judgement session. AKPK counsellors are trained to be practical and empathetic. They have seen every situation.

Based on this assessment, the counsellor will recommend one of several paths:

• Self-management — if your situation is tight but manageable with better budgeting
• DMP enrolment — if your debts are beyond what you can realistically service under current terms
• Other options — which may include negotiating directly with specific creditors or exploring other relief programmes

Step 5: Repayment Plan and Creditor Approval

If DMP is recommended and you agree to proceed, AKPK drafts a repayment proposal and sends it to all your creditors. This proposal includes:

• Proposed monthly payment amount
• Proposed interest rate (often 0% for credit cards)
• Proposed repayment duration
• Distribution breakdown (how much goes to each creditor)

Creditors typically respond within 2 to 4 weeks. Most banks accept AKPK proposals because they would rather receive structured payments than write off the debt or pursue legal action.

Step 6: Start Paying

Once all creditors agree, you begin making one monthly payment to AKPK. They handle the distribution. You receive statements showing your progress.

What Happens to Your Credit Record During DMP

This is the question that stops many people from applying. The credit impact is real — but it is also temporary and far less severe than the alternatives.

CCRIS

Your CCRIS report at Bank Negara will show an "under counselling" flag next to your accounts. This flag tells any lender who checks your report that you are enrolled in AKPK's DMP. In practice, this means new credit applications will be declined while you are on the programme.

This is by design. The DMP exists to help you clear existing debt, not accumulate new debt.

CTOS

Your CTOS Score may dip initially when the DMP flag appears. However, as you make consistent on-time payments through the programme, the negative impact stabilises. CTOS records payment patterns, and a steady string of on-time payments — even under a DMP — is better than a trail of missed payments and legal actions.

After DMP Completion

When you complete the programme:

• The "under counselling" flag is removed from your CCRIS report, typically within 1-2 BNM reporting cycles
• Your CTOS record updates to reflect completed status
• You are free to apply for credit again
• Your consistent payment history during the DMP period works in your favour — lenders can see you honoured your commitments over 5-10 years

Rebuilding your credit to a healthy level typically takes 6 to 12 months of responsible credit use after DMP completion. For guidance on that process, see our guide on how to improve your credit score in Malaysia.

What You Cannot Do While on the DMP

The DMP comes with binding restrictions. These are non-negotiable conditions, and breaking them can result in termination from the programme:

• No new credit cards or loans — you cannot apply for any new credit facility
• No use of existing credit cards — all cards enrolled in the DMP are frozen. You cannot swipe them.
• No new financing of any kind — this includes BNPL, hire purchase on new vehicles, or personal loans from licensed or unlicensed lenders
• No early exit without full settlement — you can leave the DMP early only by paying off all remaining balances in full

If AKPK discovers that you have taken on new debt while enrolled, they may terminate your DMP. If that happens, your original creditors can reinstate the original interest rates and pursue collection through normal channels.

These restrictions sound harsh, but they serve a purpose: they create a controlled environment where your debt actually goes down every month instead of creeping back up.

DMP vs Bankruptcy: A Direct Comparison

Many people fear that seeking help with debt means they are heading toward bankruptcy. The DMP exists specifically to prevent that outcome. Here is how the two compare:

	DMP	Bankruptcy
Who initiates	You — voluntarily, through AKPK	Your creditors (or you, via court petition)
Duration	5-10 years (planned repayment)	Minimum 5 years under 2020 amendments (previously indefinite)
Credit cards	Frozen — cannot use during programme	Surrendered — all cards cancelled
New credit	Cannot apply during DMP	Cannot obtain any credit without court permission
Public record	No — DMP is confidential between you, AKPK, and your creditors	Yes — gazetted in the Malaysia Insolvency Department records
Employment impact	None — employers are not notified	Significant — cannot hold directorships, some professions restricted
Property	You keep your assets	Assets may be seized and sold by the Director General of Insolvency
Completion	Debts fully repaid, counselling flag removed	Debts discharged after meeting conditions, bankruptcy annulled
Stigma	Minimal — most people do not know you are on DMP	Considerable — public record, social and professional consequences

The DMP is a managed, private, voluntary process. Bankruptcy is a legal proceeding with long-term consequences. If you are considering your options, speak to AKPK before the situation reaches the point where creditors make the decision for you.

Alternatives to the DMP

The DMP is the right tool for many people, but not for everyone. Depending on your situation, other options may be more suitable:

Self-Negotiation with Creditors

If you have one or two debts and a reasonable relationship with the bank, you can call their collections or customer service department directly and ask for a repayment plan. Many banks will agree to reduced payments or interest waivers for customers who proactively reach out. This avoids the CCRIS counselling flag entirely.

Balance Transfer

If your credit score is still intact, a 0% balance transfer from one credit card to another can buy you 6-12 months of interest-free repayment. This only works if you can clear or significantly reduce the balance within the promotional period — otherwise you are just moving the problem.

Debt Consolidation Loan

A single personal loan at a lower rate to pay off multiple higher-rate debts. This simplifies payments and may reduce total interest. However, it requires an approved loan application, which means your credit profile must still be acceptable to lenders.

URUS Programme

Launched during the COVID-19 pandemic, URUS (Program Pemerkasaan Ekonomi Rakyat) is a collaboration between AKPK, the Ministry of Finance, and Employees Provident Fund (EPF). It targets individuals whose income was disrupted by the pandemic and combines financial counselling, reskilling, and debt management. Check akpk.org.my for current availability — the programme has been extended multiple times.

Islamic Debt Restructuring (Ibra')

If your debts are with Islamic banks, the concept of ibra' (rebate) allows the bank to waive unearned profit on your financing. This can result in a principal-only repayment arrangement. Not all Islamic banks offer this proactively — you or AKPK may need to request it during negotiations. It is worth raising specifically if your financing is Shariah-compliant.

Key Takeaways

• AKPK is free. No fees, no hidden charges. It is funded by Bank Negara Malaysia and exists solely to help you.
• 253,000 Malaysians are currently on the DMP. You are not an outlier. This is a well-established programme.
• The DMP consolidates your debts into one affordable monthly payment with reduced or zero interest.
• Your credit record will show a counselling flag during the programme. This is temporary and removed after completion.
• You cannot take on new debt while enrolled. This is a feature, not a bug — it stops the cycle.
• DMP is not bankruptcy. It is private, voluntary, and you repay what you owe. There is no public record.
• Contact AKPK before things get worse. The earlier you reach out, the more options are available. Call 03-2616 7766 or visit akpk.org.my.

Debt is a solvable problem. The DMP is one of the most effective tools available to Malaysian borrowers — and it costs you nothing to find out if it is right for you.