When your salary runs out to pay off debt, what else is left to live on?
Debt is the answer!
With the rising prices of goods, Malaysians are increasingly unable to survive on what they have, increasing the debt rate in Malaysia.
However, more than 112,000 individuals have now managed to get out of the financial crisis through the Credit Management Program (DMP) by the Credit Counseling and Management Agency (AKPK).
This program was introduced to address the increasingly alarming rate of household debt.
According to the AKPK Special Report 2023–2024, a total of 60,155 cases were approved in 2024, up from 52,057 cases in the previous year, bringing the total to more than 112,000 cases in two years.
Even more impressive, AKPK has recorded RM3.2 billion in total debt repayments since 2023.
Most of the program participants started with a Debt Service Ratio (DSR) as high as 84%, meaning almost their entire salary was used to pay off debt.
However, after participating in the DMP program, participants managed to lower their DSR to 40%, thus giving them space to cover basic needs such as housing, education and health.
This program is not just about restructuring debt – it is about rebuilding hope, dignity and the opportunity to live peacefully again.
