AMCRA launched for better structured, regulated credit recovery

The official launch of the Association of Malaysian Credit Recovery Agencies (AMCRA) has raised hopes for a better structured and clearly regulated credit recovery industry in Malaysia.

The credit recovery industry has supported Malaysia’s banking and financial system for decades, particularly in the management and recovery of unsecured consumer debt.

“As consumer credit expanded alongside economic growth, licensed debt recovery agencies became an integral part of the financial ecosystem, helping financial institutions manage credit risk and maintain system stability.

“The debt recovery industry in Malaysia has grown significantly over the years. Today, reputable agencies operate with established compliance frameworks, robust technology systems, and strict client requirements, particularly from banks and financial institutions,” said AMCRA president, Rohan Jayaratnam yesterday.

He noted that the Consumer Credit Act 2025 (Act 873) and the establishment of the Consumer Credit Oversight Board (CCOB) provide long-needed clarity for the sector.

“We view the new regulatory framework as a positive step that brings structure, consistency, and legitimacy to the industry. Clear rules help distinguish licensed, responsible agencies from illegal or unethical operators and reinforce public confidence in the role we play,” he said.

He said AMCRA was formed to represent the collective voice of licensed agencies and to serve as a structured platform for engagement with regulators and industry stakeholders.

“The credit recovery industry employs thousands of Malaysians and recovers billions of ringgit in unsecured debt annually on behalf of banks and financial institutions.

“Industry leaders believe that clearer regulation will further professionalise the sector, encourage responsible practices, and enhance workforce development,” he added.

Datuk Shahrom Rafik, deputy president of AMCRA, meanwhile, said the association is built on principles of ethics, professionalism, and collaboration.

“Debt recovery is about restoring balance and responsibility within the financial system. It must be carried out lawfully, respectfully, and with dignity.

“AMCRA was formed to raise standards, support professional development, and provide a unified voice for ethical recovery agencies,” he said.

AMCRA currently represents more than 40 licensed credit recovery agencies nationwide and aims to play an active role in supporting industry standards, dialogue, and best practices as Malaysia’s consumer credit framework continues to develop.