AKPK helps 18,000+ Malaysians qualify for low-interest loans

Empowering Malaysians nationwide with financial knowledge via self-paced online modules

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The Challenge

In January 2019, the Central Bank of Malaysia (BNM) launched the RM 1 Billion Fund for Affordable Homes to help low-income buyers finance their first-home purchase. However, potential applicants needed to fulfil a mandatory financial education module to qualify for the low-interest loans—a necessary move given low financial literacy levels amongst Malaysians.

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• 6% of Malaysians have enough saved up to meet financial obligations for up to 6 months. Source: BNM Study, 2018
• 1 in 2 Malaysians say poor financial management is cause for excessive personal debt. Source: AKPK Survey, 2018

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The Credit Counselling and Debt Management Agency (AKPK) was tasked to provide a financial education module for this segment of first-time home buyers. AKPK needed a solution that could be easily implemented nationwide—one that was affordable, accessible and more effective than current on-ground efforts.

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The Solution

AKPK launched RUMAHKU in both English and Bahasa Malaysia as a requirement for first-time buyers to proceed with their home loan applications. Potential applicants across the country could access the self-paced online module—which takes approximately 1-hour to complete—at anytime, from anywhere. As proof of eligibility, applicants could attach their digital completion certificates to their loan application at participating banks.

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The Results

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In less than 10 months, AKPK has managed to:

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• Enrol 25,665 potential first-time home buyers across the country into the RUMAHKU online module, 71.5% of whom have completed the course and received certificates.
• Enable 2,567 Malaysians per month to have free access to RUMAHKU from OpenLearning marketplace. This helps AKPK fulfil their goal of raising financial literacy levels nationwide.

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AKPK also identified those who may need personalised financial advice and counselling. Among those who took the RUMAHKU survey:

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On 20 August 2019, BNM announced revisions to the policy - giving more low-income Malaysians access to the Fund. This means:

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• A new segment of first-time home buyers will have to complete the RUMAHKU module to qualify for loans
• 10 days after the BNM announcement alone, a total of 2,109 Malaysians have already enrolled in module
• The online module is able to cater to policy changes and spikes in demand without additional efforts by AKPK

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Moving Forward

Realising the possibilities of scalable and responsive financial education nationwide:

• AKPK has launched a pre-marital financial literacy module for young couples, and is piloting a similar module for potential higher education student loan applicants.

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Looking for a scalable solution that can drive responsive financial education nationwide? OpenLearning can help. Get in touch today.

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