Financial Literacy and Debt Management: A Commitment to Empowering Malaysians
Overview of AKPK’s Services
The Credit Counselling and Management Agency (AKPK) has made significant strides in providing free financial advisory services to the public, benefiting nearly 1.4 million individuals as of December 2024. In addition, AKPK has assisted approximately 495,000 borrowers through the Debt Management Programme (DMP).
Debt Management Programme (DMP) Statistics
As of December 2024, the DMP has seen notable progress, with:
- 12% of borrowers (nearly 60,000) successfully completing their loans and ending their participation in the programme.
- 5% of borrowers (over 26,000) concluding their participation in the DMP, having become capable of settling their debts without AKPK’s assistance.
- 51% of borrowers (almost 253,000) remaining active in the programme.
Financial Literacy Initiatives
The Ministry of Finance (MOF) is committed to empowering financial literacy among Malaysians, particularly those with low incomes. As part of this effort, the Financial Education Network (FEN) has organized 332 financial literacy programmes, with 37 million physical and online participants. Notably, 289 of these programmes (87%) involved low-income individuals.
Micro-Entrepreneurship and Financial Literacy
FEN has also conducted eight financial education sessions for micro-entrepreneurs during Financial Literacy Month, engaging 357 micro-entrepreneurs. This initiative has resulted in a 14% increase in knowledge among participants.
Government Commitment to Financial Education
The MOF emphasized its commitment to financial education, stating that it is an essential life skill for building financial resilience and ensuring future financial well-being. The government aims to raise public awareness about the importance of prudent financial management and to avoid falling into debt traps.
Conclusion
The government’s efforts to promote financial literacy and debt management are evident in the significant progress made by AKPK and FEN. By providing free financial advisory services and organizing financial literacy programmes, the government is empowering Malaysians to take control of their financial well-being.
Frequently Asked Questions
Q: What is the purpose of the Debt Management Programme (DMP)?
A: The DMP is designed to assist individuals with debt issues by providing a structured repayment plan and financial guidance.
Q: How many individuals have benefited from AKPK’s services?
A: Nearly 1.4 million individuals have benefited from AKPK’s free financial advisory services as of December 2024.
Q: What is the Financial Education Network (FEN)?
A: FEN is a network of organizations working together to promote financial literacy and education among Malaysians.
Q: What is the goal of the government’s financial education initiatives?
A: The government aims to empower financial literacy among Malaysians, particularly those with low incomes, to build financial resilience and ensure future financial well-being.