Bankruptcy Risk For Civil Servants Can Be Avoided Through SpeKAR

LIPIS, March 10 (Bernama) -- Civil servants can avoid bankruptcy risks due to high debts if the ANGKASA Credit Reporting System (SpeKAR) is used ass a one stop centre to check on their eligibility prior to loan approvals, Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA) president Datuk Seri Dr Abdul Fattah Abdullah said.

He added that the system could help stop individuals from taking loans beyond their financial means.

“Studies show that 10 to 15 per cent of civil servants go bankrupt each year due to debts. With SpeKAR, we can identify high risk individuals earlier and help them avoid adding to their financial burden.

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“This system can be used as a one stop centre to check the credit of an individual conducting business with financial institutions. This will ensure loan applicants have good credit and not burden them with new loans,” he told the media in response to Malaysian Department of Insolvency (MDI) director-general Datuk M Bakri Abd Majid’s statement on how some civil servants fail to repay loans after borrowing beyond their means.

Abdul Fattah explained that the SpEKAR’s advantage came from having the ANGKASA Salary Deduction System (SPGA) as a main component and that many civil servants had credit networks via cooperatives.

He said the majority of civil servants used SPGA to finance insurance payments, club or foundation fees.

“SPGA is a major source of borrowers’ data that is vital in SpEKAR, in addition to the list of 366 lenders including Non Bank Lender Credit Information (NLCI) and blacklist data.

“Therefore, ANGKASA offers companies providing loans to use SpEKAR as a one stop centre to check on an individual’s eligibility, especially those who are listed as problem borrowers,” Abdul Fattah said.

-- BERNAMA