AKPK: Penny Wise and Pound Foolish


The Credit Counselling and Debt Management Agency, or commonly known as Agensi Kaunseling dan Pengurusan Kredit (AKPK), is an agency set up by Bank Negara Malaysia in April 2006 to help individuals take control of their financial situation and gain the peace of mind that comes from the wise use of credit.

Their services include financial education on the responsible use of money and credit management skills, financial advisory, as well as a debt management programme to assist consumers in regaining financial control.

It is aimed to nurture more financially astute and resilient individuals and SMEs through its services. 

Below is an informative article by AKPK on financial tips.

Penny Wise and Pound Foolish 

There is a popular British saying, “penny wise and pound foolish.” The saying does not mean that those who have less money are wiser. Rather, it refers to someone who goes to great lengths to save some money (a few pennies) now but ends up losing more money (many British pounds) later on. It refers to people who are cautious with small amounts of money but are careless with larger amounts. 

Most of us look for ways to cut corners in our spending in a bid to stick to our prepared monthly budgets. However, does this help with wealth accumulation and management? 

Here are some examples: 

  1. Paying too much in insurance premiums

Some people tend to over-insure themselves or pay excessive premium for insurance because they do not know how to optimise their money. The main objective of buying insurance is to protect you and your loved ones from financial hardship in the event an untoward incident occurs. Go for the lowest monthly premium with the most coverage to optimise your money. 

  1. Failing to increase savings when income rises 

It is typical for someone to increase his standard of living when there is an increase in income. Whilst this is a common behavioral pattern, if we want to make changes for a better quality of life, this behavior is not recommended. Since there is an increase in income, why not increase your savings as well? 

  1. Not optimising the return on savings

One common error is putting too much money in savings instead of investing it. Whilst any investment opportunity you get needs to be scrutinised for its legality and risks involved, chances are you will stand to generate more wealth if your money is invested in a low-risk and legal investment. Just remember not to put all your eggs in one basket—diversify your investments

Other examples include: 

  • Buying the least expensive clothing and shoes, but having to replace the wardrobe frequently because of the poor quality. This does not mean that you have to invest in expensive clothing, but ensure that you receive value for money out of your purchases.
  • Parking and ‘just running in’ without paying the parking coupon, but returning to find a parking ticket or parking penalty charge notice attached to your windshield. 
  • Buying items in bulk during a sale only to throw them away because they serve no purpose or have expired (food items).

As you can see, the saying “penny wise and pound foolish” can teach us a lot about how we make decisions with our own money. It goes without saying that you should cut costs and save money. However, be smart too and think of the long-term costs of your decisions. 

Agensi Kaunseling dan Pengurusan Kredit (AKPK) provides an avenue for current and potential borrowers/consumers―both households and Small & Medium Enterprises (SMEs)―to enhance financial discipline via Financial Education, Financial Advisory and Debt Management.

Financial Advisory and Debt Management for households and SMEs are provided for FREE to individuals and SMEs by AKPK, without the use of any third-party agent. Customers can visit and submit the completed form in order to be contacted by AKPK’s financial advisor. AKPK also provides financial guidance through financial education modules at

AKPK also uses its social media platforms such as Facebook, Instagram and Twitter at @AKPKofficial to convey information on financial management, including guides and links to the services provided. The public can use the medium provided, including contacting AKPK’s financial advisors directly online if they are interested in learning more about AKPK’s services. 

Visit AKPK Ipoh office at Greentown Square for enquiries or to get our services. Taiping folks and customers from nearby areas may also seek our services at our financial advisory office at Wisma Persekutuan Taiping on every 3rd Wednesday of the month.

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