AMCRA officially launched to regulate Malaysia’s credit recovery sector under new Consumer Credit Act
PETALING JAYA: The establishment of the Association of Malaysian Credit Recovery Agencies (AMCRA) marks a significant milestone in bringing greater structure and regulatory clarity to Malaysia’s credit recovery sector.
For decades, the credit recovery industry has played a vital supporting role in the country’s banking and financial infrastructure, primarily focusing on the management and collection of unsecured consumer debts.
According to AMCRA president Rohan Jayaratnam, the sector evolved in tandem with Malaysia’s economic expansion and the corresponding growth in consumer lending. Licensed debt recovery firms have become essential partners in the financial ecosystem, assisting institutions with credit risk management and helping maintain overall system stability.
“The industry has experienced substantial growth over time. Today’s reputable agencies maintain comprehensive compliance protocols, advanced technological platforms, and adhere to stringent requirements set by their banking and financial institution clients,” Jayaratnam explained.
He emphasized that the recently enacted Consumer Credit Act 2025 (Act 873) and the creation of the Consumer Credit Oversight Board (CCOB) address a longstanding need for regulatory definition within the sector.
“We regard this new regulatory architecture as beneficial, bringing much-needed structure, standardization, and credibility to our industry. Well-defined regulations help differentiate licensed, ethical agencies from unlawful or questionable operators, while strengthening public trust in our function,” he stated.
Jayaratnam described AMCRA’s purpose as creating a representative body for licensed agencies and establishing an organized channel for dialogue with regulatory authorities and other stakeholders.
The credit recovery sector provides employment for thousands of Malaysian workers and facilitates the annual recovery of billions of ringgit in unsecured debt on behalf of banking and financial institutions. Industry representatives anticipate that enhanced regulation will drive further professionalization, promote responsible operational practices, and support workforce advancement.
AMCRA’s deputy president, Datuk Mohd Shahrom bin Mohd Rafik, highlighted that the association operates on foundational values of ethics, professionalism, and collaborative engagement.
“Debt recovery serves to restore equilibrium and accountability within the financial infrastructure. These activities must be conducted in accordance with the law, with respect, and with consideration for human dignity,” he emphasized.
“AMCRA was established to elevate industry standards, facilitate professional growth, and create a collective voice for ethical recovery practitioners,” Shahrom added.
The association currently comprises more than 40 licensed credit recovery agencies from across Malaysia and intends to actively contribute to industry standardization, stakeholder dialogue, and the promotion of best practices as the nation’s consumer credit regulatory framework continues its development.
