Finance : Sabahans are not as distressed by debts

KOTA KINABALU: Sabahans are not as distressed by debts as their counterparts in other states, according to the Credit Counselling and Management Agency (AKPK).
As of February this year, a total of 4,400 people in Kota Kinabalu have sought counselling from the agency in managing their debts.



From that total, 1,600 had to enter into the agency’s Debt Management Programme (DMP) because they were in serious debt.

In comparison, there were 78,000 people who sought similar counselling in Kuala Lumpur, 16,000 in Johor Bahru and 14,000 in Penang during the same period.

Altogether nearly 145,000 people in the country sought counselling from the agency and 55,000 were enrolled in the DMP since the agency was established in April 2006.

“It’s a fairly large amount and even though the problem may not be so apparent in smaller towns, it is a main problem in the cities,” said AKPK chief executive officer Mohamed Akwal Sultan during a press conference at the Power! Programme held at the Promenade Hotel here yesterday.

The Power! Programme is a joint partnership between Bank Negara Malaysia (BNM), AKPK and the banking industry. It is offered for free nationwide and managed by AKPK.

AKPK has also developed a six-chapter book on cash flow management, the basics of loans, how to use a credit card, buying a car and house and good debt management.

AKPK is currently on a roadshow to promote the Power! Programme, which was launched last January 19, aimed at people ages between 18 to 30 although all other age groups will still have something to learn from their lessons.

The roadshow already made its appearance in Kuala Lumpur (February 9), Penang (February 18), Melaka (February 23), Johor Bahru (March 2) and will be in Kuching (March 16) and Kuala Terengganu (March 30).

When the programme was held in Kota Kinabalu, 288 people of various age groups came, the largest attendance the roadshow ever had to date.

Participants were given advice on several aspects of managing their debts and finances.

“The major role of AKPK is to give financial education and Bank Negara feels that it’s important for the younger generation to be better at money management because if you have better money management, everything will fall into place, your work and marriage,” said the agency chief executive officer, Mohamed Akwal Sultan.

Starting next week, the Power! Programme will be available at all AKPK local offices for free on Wednesdays, starting at 9.30am to 1.30pm.

Interested participants can register online or through the toll-free number 1-800-88-2575.

Akwal added that AKPK plans to run their programmes in universities for final year students.

Employers are welcomed to contact them to run a free session at their workplace if there are 30 participants.

AKPK is a wholly owned subsidiary of Bank Negara Malaysia (BNM) and provides financial counselling and debt management to individuals as well as financial education to help them take control of their financial situation.

Individual borrowers can seek AKPK’s assistance in rescheduling or restructuring their housing loans, hire purchase loans, and personal loans, or outstanding credit/charge card balances, under the purview of BNM.

Akwal explained that those enrolled in the DMP are entitled to an extended payment period for up to 10 years, reduced interest rates on credit cards or no interest if they have medical emergencies or are unemployed and a stay of legal action by the banks. “To help them make their cash flow easier, they will pay an amount to an account in AKPK and this will be apportioned to the banks proportionately once they have enough to feed their families and send their children to school,” he said.

So far, AKPK has collected RM22 million a month in February and all these services are free of charge, which gained cooperation from the banks.

Source : New Sabah Times