KUALA LUMPUR, April 8 — As many as 800,00 civil servants are repaying RM1.2 billion every month for their loans, making up an annual sum of RM14.4 billion managed by civil servant loan agency National Cooperative Movement (Angkasa), Utusan Malaysia reported today.

Although the total amount varies from time to time, civil servants often take out personal loans, typically during the beginning of the school year, before higher learning institutes admissions begin, and during festive seasons, Angkasa president Datuk Seri Abdul Fattah Abdullah told the local daily.

"The total number of civil servants that make salary deductions through Angkasa is around 800,000 with a monthly sum of around RM1.2 billion, and around RM14.4 billion a year.

"For example, for the coming Eid al-Fitr (Hari Raya Aidilfitri), the total number of staff applying for new loans increased 10 per cent or an additional 10,000, from 30,000 to 40,000 people,” Abdul Fattah was quoted as saying.

The large number of borrowers reflects the rising cost of living, among others, he said.

According to the Utusan Malaysia news report, there are five other agencies that manage the loans taken out by civil servants: Bank Simpanan Nasional (BSN), Yayasan Ihsan Rakyat, CoShare Holdings Berhad, I.Destinasi, and MBSB Bank Berhad.

"There are six agencies that deduct salaries like Angkasa. If the loan was made by another industry, there is a possibility that a different agency manages the loan.

"The salary deduction code is only given by the Accountant General’s Department. Civil servants do not necessarily have to make deductions from Angkasa but maybe they deduct salaries with other companies, but the concept remains the same,” Abdul Fattah was quoted as saying.

Angkasa was reported to have developed a system to control the debt rate of households, especially for civil servants, taking into account the amount of old deductions and new deductions to calculate the limit of debt.

"In 2017, Angkasa sent a suggestion to the government for all agencies that have the code for salary deductions to be put under Angkasa’s salary deduction system, so the debt limit is controlled systematically and centrally,” Abdul Fattah was quoted as saying.

Utusan Malaysia also reported the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) secretary general Abdul Rahman Mohd Nordin saying that civil servants cannot take out loans that exceed 60 per cent of their salary and an investigation will be conducted against those who do so.

He also said that civil servants who are in serious debt will be called to discuss a solution.