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.

AKPK has been operating since April 2006, and over that time it has counselled hundreds of thousands of Malaysians and enrolled a substantial share of them onto the DMP. This is not a fringe programme for extreme cases. It is a mainstream financial tool used by working Malaysians across every income level.

(We previously carried specific enrolment figures here. They were removed in July 2026 because we could not verify them against a dated AKPK or BNM source, and the figures circulating publicly differ by a wide margin. We would rather say less than quote a number you might repeat to a bank. AKPK publishes an annual report — if you want current figures, that is the place to look.)

What Is AKPK?

AKPK's full name is the Credit Counselling and Debt Management Agency (Agensi Kaunseling dan Pengurusan Kredit). It was set up by Bank Negara Malaysia (BNM) in April 2006, and BNM's own launch announcement describes it as "a wholly owned subsidiary of Bank Negara Malaysia". We name no founding programme here: an earlier version of this guide credited the Financial Sector Talent Enrichment Programme, which is BNM's graduate talent-development scheme for the finance industry and has nothing to do with establishing a consumer credit-counselling agency.

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. It is not the only route: a debt consolidation loan and negotiating with lenders informally are the two alternatives, and they affect your record differently

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

There is no fixed DMP tenure. The repayment period is worked out from your total debt and what you can genuinely afford each month, so it can run for several years — commonly a number of years rather than a number of months, and longer where the balances are large relative to income. The plan is built around your real budget: what you earn minus what you genuinely need for housing, food, transport and dependents. Ask your counsellor for the projected end date in writing at the point the plan is set, because that is the figure that actually applies to you.

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 — each of which has its own credit consequences worth understanding before you commit to a plan: losing your job, going through a divorce, or the death of a spouse

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 for the whole length of the plan

Rebuilding after completion is measured in clean months on a live facility, not in elapsed time — no lender publishes a post-DMP waiting period, and the usual obstacle is that the programme leaves you with no active credit for an underwriter to read. Six or more consecutive clean months on one fresh facility is the signal worth acting on. See how to improve your credit score in Malaysia and what happens after an AKPK DMP for the sequence.

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:

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 Pengurusan dan Ketahanan Kewangan, the Financial Management and Resilience Programme — was introduced by the banking industry together with AKPK, with Bank Negara's support. It was aimed at B50 borrowers with performing loans who had lost their job or at least half their income, and it combined repayment relief with financial counselling and referrals to supplement income. Enrolment ran in defined windows rather than continuously, so check akpk.org.my for the current position before relying on it.

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 a wholly owned subsidiary of Bank Negara Malaysia and its services are provided free of charge.
• You are not an outlier. The DMP is a well-established programme that has been running since 2006.
• 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.