How does Angkasa manage RM14.4 billion in annual civil servant loans?

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Angkasa Manages RM14.4 Billion in Annual Civil Servant Loans Through a System Incorporating Salary Deductions and Debt Control Measures

Angkasa, the National Cooperative Movement, oversees an annual total of RM14.4 billion in loans for approximately 800,000 civil servants. This management involves facilitating personal loans, which are frequently sought for expenses such as the commencement of the school year, university admissions, and festive periods like Eid al-Fitr. The agency also implements a system designed to regulate household debt levels by considering existing and new salary deductions to establish appropriate debt limits.
Facilitating Loans for Civil Servants

Civil servants commonly access personal loans through Angkasa, with demand often peaking at specific times of the year. For instance, ahead of the Eid al-Fitr festival, there was a 10% increase in new loan applications, bringing the total from 30,000 to 40,000 individuals. This trend, alongside other factors such as the increasing cost of living, contributes to the substantial volume of loans managed by the cooperative.
Collaboration with Other Financial Agencies

Angkasa is one of six agencies involved in managing civil servant loans, with others including Bank Simpanan Nasional (BSN), Yayasan Ihsan Rakyat, CoShare Holdings Berhad, I.Destinasi, and MBSB Bank Berhad. The Accountant General’s Department is responsible for issuing the salary deduction codes that enable these agencies to manage loan repayments directly from civil servants' salaries, regardless of which agency facilitated the loan.
Implementing Debt Control Mechanisms

To address potential over-indebtedness among civil servants, Angkasa has developed a system that calculates debt limits by factoring in both existing and newly initiated salary deductions. This proactive approach aims to maintain a controlled debt rate within households. In 2017, Angkasa proposed to the government that all agencies with salary deduction capabilities be integrated into its central salary deduction system to ensure systematic and unified debt limit management across the board.

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How does Angkasa manage RM14.4 billion in annual civil servant loans?

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